Suppose an Input service distributor (ISD) has four units. The turnover of the four units and credit available for distribution may be assumed as follows:



Amount (in Rs.)

Unit A

20 crores

Unit B

30 crores

Unit C

10 crores

Unit D

5 crores

Total credit distributable


 Suppose the above input service was consumed in unit A and B only, so according to above provision, the credit was to be distributed as follows:-

Unit A’s share: Turnover of unit A/ Total turnover of unit A &B * Cenvat Credit

                        = 20/50 * 15000

                        = Rs. 6000/-

Unit B’s share = 30/50 * 15000

                        = Rs. 9000/-.



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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.