Manner of distribution of common input service credit under rule 7(d) of the Cenvat Credit Rules, 2004 - regarding.

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... w Delhi 11th July, 2014 To, Chief Commissioners of Central Excise and Service Tax (All), Director General (Service Tax), Director General (Audit), Director General (Central Excise Intelligence), Commissioners of Service Tax (All), Commissioners of Central Excise and Service Tax (All). Madam/Sir, Subject : Manner of distribution of common input service credit under r .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... sed by more than one unit shall be distributed pro rata on the basis of the turnover of such units during the relevant period to the total turnover of all its units, which are operational in the current year, during the said relevant period 2. These doubts have arisen with respect to the meaning of the words such unit used in rule 7(d) . It has been stated in the representations that due to .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... rule 7(d) seeks to allow distribution of input service credit to all units in the ratio of their turnover of the previous year. To make the intent of the amended rule clear, illustration of the method of distribution to be followed is given below. 4. An Input Service Distributor (ISD) has a total of 4 units namely A , B , C and D , which are operational in the current year. The credit of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... A (Manufacturing excisable goods) 25,00,000 B (Manufacturing excisable and exempted goods) 30,00,000 C (providing exclusively exempted service) 15,00,000 D (providing taxable and exempted service) 30,00,000 Total .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ether such common input services were used in all the units or in some of the units. 5. Reference may be made to Sh. G. D. Lohani, Director (TRU) in case of any further doubt. Trade Notice/Public Notice may be issued to the field formations and tax payers. Please acknowledge receipt of this Circular. 6. Hindi version to follow. Yours sincerely, [Dr. Abhishek Chandra Gupta] Tech .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X