Transfer of credit available

[puneet virmani]

X is a company providing taxable service (management consultancy) from 6 premises having centralized accounting system has applied for centralized registration with in time.As all the services are to be exported company will file refund claim after export from premises centrally registered. Query is whether the branches of the company will have to get registered as Input service distributer or not.Is it mandatory to transfer credit available at branches to premise centrally registered or centralised registration will suffice.

[Guest]

In my view, in case centralised registration is obtained, the concept of input service distributor will not arise. Based on centralised registration, the CENVAT credit on input services relating to all the places of business including branches can be claimed as refund by way of filing single refund claim before the Centralised registration authority.

[Surender Gupta]

Views expressed by Mr. V. Ramanujam are correct. You can avail cenvat credit at the centralized premises directly for all the branches and process the refund application accordingly.

AI Summary

Centralised registration allows centralized CENVAT credit claim and refund without separate input service distributor registrations. Where a company with a centralized accounting system obtains centralised registration, individual branches need not register as an input service distributor; input service credits for all places of business may be claimed and refunded through the centrally registered premise by filing a single refund claim.