INPUT SERVICE PROVIDER

[SNEHAL SHAH]

Sir,

Our head office at Mumbai Andheri and we are registered with Input Service provider . There is 5 Group of company and all major expense and purchase amount will be paid through head office , so we are take cenvat credit ( Service tax ) under ISD registration and month end we are bifercate all plant through Invoice ( head office invoice ) as per Profit margin of all plant . But some confusion is that is it forward all cenvate credit before file ST-3 Return OR There is no any relation with cenvate bifurcation or ST-3 Submission of ISD .

PLEASE GIVE CLARITY ABOUT THIS .

Thanks .

SACHIN

AI Summary

Input service distribution: ISD need not allocate CENVAT credit before filing returns; distribute within reasonable time.
Input service distribution under Rules 7 and 7A requires that distributed credit not exceed credit availed by the ISD, must not be given to units exclusively engaged in exempted services or manufacturing exempted goods, and entitles units manufacturing dutiable excisable goods to receive credit; the rules do not mandate distribution prior to filing the periodical return, but allocation should occur within a reasonable time and respecting eligibility limits.