30 January 2010
Sir A manufacturing has a few divisions. A Division (Div I) makes componets for another division (Div II). Div I also give some work outside on jobwork basis. The jobworker will raise a service invoice. Can Div I take Service tax Input? Div I further send those parts to Div II which makes final product.
01 February 2010
The service comes under BAS - processing for or on behalf of another. If Div I is paying CED then the goods would be sent by them to Div II under Rule 4 (5)(a). In such a case Div II can also issue under the same rules and JW need not charge the CED under not 8/2005.
If JW has charged the ST then Div II can avail the credit as the bill wouldbe addressed to DivII. If Div I gets a ISD ( input service ditributor) registration then they can avil credit of the JW + other bills addressed to Div I.
02 February 2010
suppose in this case the company availing notification no 8/2005, then can Div I take service tax input on bill raised to Div I or can Div II take this as input credit
CAclubindia
