What is the manner in which Input Service Distributor should distribute the credit where distributor and recipient are located in different states?

The Input Service Distributor is permitted to distribute the credit as follows:
 Central tax as central tax or integrated tax; and

 Integrated tax as integrated tax or central tax, and

 State tax as State tax or integrated tax [Rule 39(1)(f)]

(ICAI FAQ PUBLICATION 06-09-2017 -: Distribution of credit by the Input service distributor : FAQ NO. 37)

 

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