Input service distributor

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Natesh Navada (Querist)
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03 January 2013 The Service Provider, registered under ISD, having a brought forward undistributed CENVAT Credit as on 31-3-2012, can he distribute now, the accumulated credit to one chosen unit, under Rule 7 of the CCR?

Kaushik Vinod

Kaushik Vinod (Expert)
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05 January 2013 Hi Natesh,

Satisfy the condition given in rule 7 of CCR,2004 and further there is no time limitation in utilizing the credit of Service tax
This was held in Dai Ichi Karkaria Ltd (1999) 112 ELT 353 (SC).

Thanks

Natesh Navada

Natesh Navada (Querist)
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05 January 2013 Thanks for the reply Mr. Kaushik Vinod.

The issue here is that there has been a change in Rule 7 of CCR from 1st July 2012, which requires an ISD to transfer the credit to all the units in proportion to the turnover of those units, during the relevant period itself. Since the ISD has not transferred any credit till now the question is whether it can transfer the credit of previous years now??

Also can it transfer to single unit??

Thanks in Advance

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Kaushik Vinod

Kaushik Vinod (Expert)
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05 January 2013 Yes Natesh Navada I know the Rule has been amended vide Notification No. 28/2012-C.E.(N.T.), dated 20-6-2012, w.e.f. 1-7-2012 but this amendment is not with respect to what you are saying.
I stand on what I earlier said.

It can not transfer the credit to single unit if the Services has been used by all other units Providing output Service.

Thanks