Common Services received at Head Office
Query (Issue) Started By: – Kaustubh Karandikar Dated:- 28-2-2019 Last Reply Date:- 4-4-2019 Goods and Services Tax – GST
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GST
XYZ having manufacturing unit cum Head Office in Maharashtra and other units outside Maharashtra. Certain common services are received at Maharashtra on which 100% credit is taken at Maharashtra. In this situation, they can raise monthly invoice in the name of other units under the category of 'Business Support Service' based on the value mentioned in the invoices of the service provider for common services received at Maharashtra and by adding certain percentage of mark – up on it. Once this figure is arrived at, the same needs to be apportioned in t
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red by the Head Office in seeking opinion on an issue which is benefiting to all the branches located in various States then first challenge is reverse charge liability cannot on legal service cannot be paid under ISD registration. Thus for compliance the liability has to be paid under regular registration taken for Maharashtra . For doing this payment the invoice ahould be in the address of office/factory having regular registration number.
Then a cross charge invoice is to be raised from regular registration number to the ISD registration number . And the credit gets populated to ISD number then it can distribute the credit .
In order to overcome such challenges company is instead of taking ISD registration raises cross charge invoices
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