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.

AI Summary

Centralized Registration Allows Management Consultancy to Claim CENVAT Credit Without Input Service Distributor Registration for All Branches A company providing management consultancy services from multiple locations with a centralized accounting system inquired about the necessity of registering branches as Input Service Distributors for tax purposes. The company, which exports services, questioned whether centralized registration suffices for claiming CENVAT credit refunds. Two respondents confirmed that with centralized registration, the concept of an Input Service Distributor is not applicable. The company can claim CENVAT credit for all branches through a single refund application filed with the centralized registration authority.