Claim of Service tax credit

[sunil jain]

I have one central office(CO)and two branches. Services are provided by banches. In case some input services directly identifiable to respective branch is paid by CO( althogh service is recd by respective branches).Branches are registered as service provider. To claim input credit by branches, do CO is to get itself registeration as 'Input Service Distributor' or can credit be claimed by banches simply on tne basis of debit note raised by CO, as services are recd by banches directly.

[Surender Gupta]

Where branches are registered separately, and receiving input services directly i.e. containing the particulars evidencing that input services are being received by the respective branch only, in that the concerned branch can take the credit directly even if the payment is made by the central office. The payment proof can be shown from the bank statement of branch. On the contrary where the services are being received by the central office identifiable as belong to respective branch in that case, CO is required to get registration as ISD, input service distributor and pass the credit to the concerned branch as per prescribed procedure.

AI Summary

Service Tax Credit: Branches Can Claim Directly with Bank Proof; CO Needs ISD Registration for Distributed Services. A query was raised about claiming service tax credit when a central office (CO) pays for input services received directly by its registered branches. The concern was whether the CO needs to register as an Input Service Distributor (ISD) or if branches can claim credit based on a debit note from the CO. The response clarified that if branches are registered separately and receive services directly, they can claim credit using their bank statements as proof of payment, even if the CO paid. However, if services are received by the CO for branches, the CO must register as an ISD to distribute the credit.