Input Service Distributor

[P S SATYA NARAYANA]

Dear Sir,

The Company turnover is from sale of  both Excisable and Non-excisable products.The Company is having a EOU (excisable product).  The Comapny is in the process of completing its SAP implementation.

Can the Comapny distribute the Service Tax paid on the invoice  received for implementation to EOU which is producing Excisable products ?

The Company is in the process of ISD registration.  However some of the services bills have already been made in the current FY.  Whether distribution can be made for the ST payment made prior to the ISD registration.

Should Company obtain a separate AMC(for SAP maint)  for  EOU to calim Service Tax refund ?

regards

P S Satyanarayana

 

[YAGAY andSUN]

There was a favourable judgment by the Tribunal in which it has been held that if CENVAT credit has been distributed prior to getting the ISD Registration Certificate, it would be valid. 

[P S SATYA NARAYANA]

Dear Sir,

Would appreciate if you can kindly provide Tribunal reference which had given favourable decesion that the CENVAT credit can be distributed prior to getting ISD Registration.

thanks and regards

PSSatyanarayana

[YAGAY andSUN]

Will revert soon.......

[YAGAY andSUN]

2012 (12) TMI 581 - CESTAT MUMBAI

WNS GLOBAL SERVICES PVT LTD. Versus COMMISSIONER OF CENTRAL EXCISE, NASHIK

[P S SATYA NARAYANA]

THANK YOU very much, Sir.

AI Summary

Service tax credit distribution: pre-registration allocation permitted, enabling ISD-era credits despite registration timing issues. Distribution of input service tax/CENVAT credit to an EOU can be effected even if formal Input Service Distributor registration is not yet obtained, as a tribunal has recognised pre-registration distribution as valid; questions remain about whether separate service contracts for the EOU or post-facto coverage of earlier invoices are necessary to secure refund or credit under the ISD mechanism.