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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 |
15000 |
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/-.
