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

Input service credit: branches can claim credit if services are directly received; otherwise central office must be input service distributor. Where branches are separately registered and input services are directly received by a branch with particulars evidencing receipt, that branch may claim input service credit even if the central office paid; payment proof from the branch is acceptable. If services are received by the central office but attributable to branches, the central office must register as an Input Service Distributor and allocate credit as prescribed.