ITC on rent paid by Head office

[KARAN VERMA]

Sir, I want to transfer my Input credit accumulate at Head office in Delhi to Factory in Himachal pradesh.

How can I transfer input credit through cross charge or through ISD ?

[KASTURI SETHI]

ISD is the best option but only input service credit can be distributed by way of issuance of invoices.

AI Summary

Input tax credit transfer via ISD: only input service credit may be allocated through invoices to recipient units. Use of an Input Service Distributor (ISD) is the recommended mechanism to transfer accumulated input tax credit from a head office to a factory, but ISD distribution applies only to input service credit and must be effected by issuance of invoices to recipient units.