Input Service Distributor
Necessity for Input Service distributor:-
In many cases (like the cases of manufacturers having different units spread over vari-ous parts of the country), it may happen that the bill/ invoice in respect of input servic-es is raised in the name of head office/regional office, etc., while the services are actual-ly received in the factory / factories or premises of the service provider. Similarly, in the case of services which are not specific for any particular factory or premises (such as advertising, market research, management consultancy, etc.) the bills/invoices may be received in the aforesaid head office/ regional offices etc. In order to provide for a me-chanism whereby the tax credit could be passed on the respective factory/ premises, such head office/ regional offices will have to take up the responsibility of distributing the tax credit to these units through the medium of invoices. Such offices of the manu-facturer or service provider are designated as ‘input service distributor’ under rule 2(m). Definition:- “Input Service Distributor” has the meaning assigned to it in clause (m) of rule (2) of CENVAT Credit Rules, 2004:- “Input service distributor” means an office of the manu-facturer or producer of final products or provider of output service, which receives in-voices issued under rule 4A of the Service Tax Rules, 1994 towards purchases of input services and issues invoice, bill or as the case may be, challan for the purposes of distri-buting the credit of service tax paid on the said services to such manufacturer or pro-ducer or provider, as the case may be;
Procedure of Registration as Input service Distributor :-
1. Application for registration would be submitted to Jurisdictional Central Excise Office, in duplicate in Form ST-1. Photocopy of the PAN and proof of address must be enclosed.
2. Copy of PAN card is necessary as a PAN based code (Service Tax Code) would be allotted to every assessee.
3. A person liable to pay service tax should file an application for registration with-in 30 days from the date on which the service tax on particular taxable service comes into effect or within 30 days from the commencement of his activity.
4. An assessee should get the registration certificate in form S.T.2 (registration number) within 7 days from the date of submission of form S.T.1, under normal circumstances
5. A fresh registration is required to be obtained in case of transfer of business to another person. Any registered assessee when ceases to provide the taxable ser-vice shall surrender the registration certificate immediately.