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

 

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.