Input Service Distribution

[Manoj Sahu]

What will be the process of getting Input Service Distribution of the service tax which is paid by a Head Office. Input service distribution is distribution by Head Office to the branch as Branch is clearing excisable goods and is subject to payment of service tax.

 

[YAGAY and SUN]

Please refer Rule 7A [inserted by Notification No. 10/2008-C.E. (N.T.), dt. 01-03-2008, w.e.f. 01-04-2008] of the CENVAT credit Rules, 2004 in this regard.

AI Summary

Input service distribution governed by CENVAT Credit Rules enables head office credit allocation to branches subject to service tax.
Input service distribution allocates CENVAT credit paid by a Head Office to branches that clear dutiable goods and pay service tax; the procedure and conditions for such distribution are prescribed in the CENVAT Credit Rules, 2004 as amended by the notification introducing the input service distribution provision, which sets out the framework for credit allocation from a central unit to branches.