04 November 2009
A company has registered its HO with ST dept. but not the branch. While filing ER-1 return, it has taken service tax credit for ST paid on exps of both HO and branch. Can the company claim credit for ST paid on exps related to branch?
Now the company has shifted its branch office to another state. So registration of the branch will be at the new location. Can the company any how claim the ST credit for ST paid on exps incurred for branch at old location?
Certain consultancy services were availed at branch office, which was pertaining to company as a whole. Should the ST paid on such consultancy exps be considered as branch exps or HO exp?
04 November 2009
First about registration: If the Assessee has a centralised billing system or centralised accounting system; then at the option of the service provider, register such premises from where the centralised accounting is done. If there is no such centralised system, then they have to obtain registration in respect of each premises. It seems from your case that the company has a centralised system and not given any information about branch while applying for registration. You can file Form ST-1 for amendment of information declared by the existing Registrant. Therefore, first file ST-1 about the Branch old address and new address to the department and continue claiming of Service tax input tax credit pertaining to Head office as well as Branch.
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