CENVAT Credit - Centralised ISD?
WE received this mail from a leading manufacturer.
A manufacturer having several manufacturing units has its Head Office in a metro city, Regional Offices in the State Capital and also Branch Offices where he receives many services like Advertisement, Sales Promotion, Event management, Catering etc., and all / some of these services are related to his manufacturing activity directly or indirectly. However, presently there is no provision for taking centralized ISD (Input Service Distributor) registration by the company for distribution of Service Tax credit to the Units of Manufacturers.
In order to avoid multiple ISD registrations, the CBEC should allow Centralised ISD registration whereby the credits, which the manufacturer receives at their HO, Branches, regional Offices, etc. can be taken at a single place and can be distributed as per the Rules. Because if a manufacturer has 50 offices where he receives various services that are in relation to the manufacturing activity, then he has to take 50 ISD registrations, file Returns, face Audits at 50 places, which is ridiculous and avoidable. So why can't we have Centralised ISD registration facility on the lines of centralized registration available for Service Providers?
Will the Board try to solve this genuine problem?