Isp bill in name of ho

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Deepak Agrawal

SAP Manager (FI/CO)

2755 Points Joined October 2008

We are Manufacturing firm having head office in Delhi and manufacturing plant in Jaipur. HO is registered as input service tax distributor. Jaipur plant has separate excise duty and service tax registeration.

Now our Jaipur plant took some services from one of my service vendor. Vendor has charged service tax on bill. Service was provided in Jaipur plant. But the bill is in name of our head office at Delhi.

So please tell me who is elligible to take credit? - Wether Jaipur (where service was given) or it is Delhi (in whose name bill was raised). At present expense and vendor is booked in Jaipur but we take credit in Delhi head office (since bill is addressed to Delhi) and then pass on that service tax credit to Jaipur plant.

But I think, since service was provided in Jaipur plant, it can straight away take the service tax credit.

Please provide with some service tax rule number, or some link.

Replies (5)

Tejas Jain

Chartered Accountant

314 Points Joined February 2009

Service tax Credit can be taken by the Person who actually receivs service. In this case the Service has been rendered to Jaipur therefore service tax credit can be taken by the Jaipur office. Ask the vendor to change the Address in the bill and issue fresh Invoice stating the address of the Jaipur.

Kapil

68 Points Joined May 2012

CENVAT Credit can also be took by ISP and can be further distributed to the factory. Hence the concept of ISP was introduced.

Tejas Jain

Chartered Accountant

314 Points Joined February 2009

@ Kapil But in this case service is received by the Mfg. Unit its just mistake of service provider who issued the bill in the address of HO. HO has not received any service. ISD is applicable when HO has received service and thn distributed to Mfg Unit.