Input service distributors

[jitendra Gupta]

A copmany/group established since 2000 and having four units. One unit started in 2000, second in 2003 and remaining in the year 2008(exempted unit). The concept of ISD introduced in June 2005 according to which registered office/corporate office has to get registration of ISD for distributing service credit. The registered office registered under ISD from 11/2008 and distributed service tax credit amongs its four unit. The credit od service tax pertaining to the year from 2004-05 to 2008-09. Can registered office distribute credit of service tax prior to its registration or prior to inteoduce ISD concepts? Whether there is any case law pertains to clarrify above situatiion/ position? Please guide me.

AI Summary

Company Seeks Guidance on Distributing Pre-Registration Service Tax Credits via ISD; Challenges and Reasonable Cause Highlighted A company with four units, established since 2000, sought advice on distributing service tax credit through an Input Service Distributor (ISD) registration, obtained in November 2008. They queried whether they could distribute service tax credits from 2004-05 to 2008-09, prior to their ISD registration and the ISD concept's introduction in 2005. The response clarified that while there is no restriction on distributing credits from before obtaining ISD registration, distributing credits for those years may present challenges, necessitating a reasonable cause before adjudication or appellate authorities.