Question

X Ltd. has its Head Office (HO) at Mumbai and
branches across India. The HO collects the Input
Tax Credit on all purchases made and distributes it
to all the recipients (branches) under different
heads, like CGST, SGST, UTGST, IGST etc. The HO
exhibits a
type of entity in the
example?​

Answer 1

Explanation:

input service distributor

Answer 2

Answer:

X Ltd is Input service distributor

Explanation

• ISD (Input service distributor ) is taxpayer that receives invoices for the branches are used
• ITC ( Input tax credit) are to be allocated to the branches proportionately in the invoice by ISD
• This ISD concept are to be facilitating for the business who share their common expenditure and billing and payment are to be made for the business