TaxTMI 
TaxTMI 
Manner of distribution of common input service credit under rule 7(d) of the Cenvat Credit Rules, 2004 - regarding.
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....orth Block, New Delhi 11th July, 2014 To, Chief Commissioners of Central Excise and Service Tax (All), Director General (Service Tax), Director General (Audit), Director General (Central Excise Intelligence), Commissioners of Service Tax (All), Commissioners of Central Excise and Service Tax (All). Madam/Sir, Subject: Manner of distribution of common input service credit....
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....e used by more than one unit shall be distributed pro rata on the basis of the turnover of such units during the relevant period to the total turnover of all its units, which are operational in the current year, during the said relevant period' 2. These doubts have arisen with respect to the meaning of the words 'such unit' used in rule 7(d). It has been stated in the representations that due t....
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....) seeks to allow distribution of input service credit to all units in the ratio of their turnover of the previous year. To make the intent of the amended rule clear, illustration of the method of distribution to be followed is given below. 4. An Input Service Distributor (ISD) has a total of 4 units namely 'A', "B', 'C' and 'D', which are operational in the current year. The credit of input ser....
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....facturing excisable and exempted goods) 30,00,000 C (providing exclusively exempted service) 15,00,000 D (providing taxable and exempted service) 30,00,000 Total 1,00,00,000 The common input service relates to units 'A', 'B' and 'C', the distribution will be as under: (i) Distribution to 'A' =12000 * 2500000/10000000 = 3000 (ii) Distribution to 'B' ....