Input Service Distributor credit distribution requires pro rata allocation based on turnover and unit-specific service use. Input service distributors receive input services on behalf of manufacturers or service providers and must allocate Cenvat credit without exceeding available credit; credits used exclusively by exempt units are excluded and credits used wholly by one unit go solely to that unit. Credits used by multiple or all units are distributed pro rata based on the turnover of operational units during the relevant period. Credits allocated to outsourced manufacturing units are restricted to duty on goods made for the distributor, and specified documentation and return requirements, as well as recovery and penalty provisions, apply.
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Provisions expressly mentioned in the judgment/order text.
Input Service Distributor credit distribution requires pro rata allocation based on turnover and unit-specific service use.
Input service distributors receive input services on behalf of manufacturers or service providers and must allocate Cenvat credit without exceeding available credit; credits used exclusively by exempt units are excluded and credits used wholly by one unit go solely to that unit. Credits used by multiple or all units are distributed pro rata based on the turnover of operational units during the relevant period. Credits allocated to outsourced manufacturing units are restricted to duty on goods made for the distributor, and specified documentation and return requirements, as well as recovery and penalty provisions, apply.
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