Centralized Registration and Cenvat Credit viz-a-viz Input Service Distributor

[Surender Gupta]

Till 1^st of the November 2006 there were lot of confusions about centralized registration and Cenvat credit. The assessee who had opted for centralized registration was facing difficulties about availing Cenvat credit against the input services received by the other location offices of such assessee.

Registration of each premises as "Input Service Distributor" was the only way Cenvat credit of the input services received by the other locations despite the fact that the assessee has centralized registration for the purpose of providing output services.

But, now the legislature has removed the above anomaly and single centralized registration would be sufficient for the purpose of payment of service tax from the one centralized location of the assessee and for the purpose of availing Cenvat credit at its centralized location against the input services received at its other location.

For this purpose Rule 4(2) and (3) of the Service Tax Rules, 1994  has been amended with effect from 2-11-2006 vide notification no. 29/2006 ST dated 2-11-2006.

Further, now in all cases, centralized registration would be granted by the Commissioner of Central Excise.

Also see: Registration procedures