Goods purchase for Head Office

[Vinod Maheswari]

Respected Experts

Please answer the following Query:-

I am registered as an ISD. All common services received are duly distributed. Now if am purchasing some goods (i.e Lap top, phtocopier maching, AC etc) for my ISD location, can i distribute credit of all such goods.(As ISD can distribute credit of services only that what will be about credit on such goods)

Thanx

[KASTURI SETHI]

ISD cannot distribute ITC of goods as it is evident from the nomenclature itself. However, you have one option. If Head office is registered as dealer and in the application for registration branches are declared as additional place of business, being in the same State.Branches should be located in the same State. No other alternative for distribution of credit in respect of goods.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir 'a view, ISD cannot distribute credit on goods. For this purpose you have to get the goods delivered at respective branches and also the bill from vendor is to get on that branch itself. If you want to have control of the purchases get the copy of invoice at head office.

AI Summary

ISD Input Tax Credit on goods cannot be distributed; branches receiving goods must claim the credit. An ISD may distribute ITC only on services and cannot distribute credit on goods. To enable claim of ITC on goods, goods must be billed and delivered to the respective branch (or branches declared as additional places of business under the same registration in the same State), allowing those branches to claim the input tax credit while the head office may retain invoice copies for control.