Input Service Distributor ” means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office.
Why do business get themselves as Distributor
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So that they can distribute Credit to their other Branches
What type of Input Tax Credit can be distributed
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Only Input Service can be Distributed
Inputs and Capital Goods cannot be Distributed
What type of Invoice to be issued by Input Service Distributor
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Tax Invoice to be issued
Separate series of invoice is required for purpose of Distributing Credit
Can it be distributed to Other Business Also of same holding company
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No, Pan No should be same for distributing credit
(Holding and Subsidiary Company will have separate Pan No)
How to Distribute Credit if it is Related to More than One Office?
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Credit to be Distributed
On basis of Last Year Turnover
Of business currently existing in Current Year
What if there is no last year turnover
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Turnover of Previous Quarter (last quarter prior to distribution) to be considered
GST Return for July, Aug, Sep to be filed by 15 Nov 2017