A Manufacturing firm having head office in Delhi and manufacturing plant in Jaipur. HO is registered as input service tax distributor. Jaipur plant has separate excise duty and service tax registeration.
Now Jaipur plant took some services from one of Delhi's service vendor. Vendor has charged service tax on bill. Service was provided in Jaipur plant. But the bill is in name of our head office at Delhi.
So please tell me who is elligible to take credit? - Wether Jaipur (where service was given) or it is Delhi (in whose name bill was raised).
Manufacturing firm seeks clarity on input tax credit eligibility for services billed to head office but used by plant. A manufacturing firm with a head office in Delhi and a plant in Jaipur seeks clarity on input tax credit eligibility. The Jaipur plant received services from a vendor in Delhi, with the service tax charged to the Delhi head office. The query concerns whether the Jaipur plant or the Delhi head office is eligible for the credit. According to responses, the head office can allocate the service tax credit to the Jaipur unit, provided payment is made to the service provider and an invoice is issued for the credit transfer, but the head office itself cannot avail the credit. (AI Summary)
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