Q 3. What are the conditions/restrictions for distribution of credit?
Ans. The distribution of credit would be done subject to the following conditions:
a) Credit should be distributed through tax invoice or other document as prescribed;
b) Amount of credit distributed should not exceed the amount of credit available;
c). Credit should be distributed only to such suppliers to whom such services are attributable;
d). Credit in respect of services attributable to more than one supplier should be distributed proportionately on the basis of turnover of respective supplier during the preceding financial year.
