Input service distributors

[jitendra Gupta]

Registered office having three units. One unit started from December 2007. Registered office was registered as Input service distributors prior to December 2007 and distributed service tax credit prior to December 2007 to unit started from December 2007. Whether registered office can distribute service tax credit (period prior to December 2007)to unit started from December 2007?

AI Summary

Can a Registered Office Distribute Pre-Dec 2007 Service Tax Credit to a New Unit? No Clear Legal Provision. A query was raised regarding whether a registered office, acting as an Input Service Distributor, can distribute service tax credit accrued before December 2007 to a unit that began operations in December 2007. The response indicated that there is no explicit legal provision or circular addressing this situation. While there is no restriction on transferring credit to a new unit, it is advised against transferring credit from the prior period to avoid potential issues with the service tax department. However, if prepared for possible litigation, the transfer could be pursued.