28 April 2010
Input Service provider means an office of the manufacturer or producer of the final products or provider of service, which receives invoices issued under rule 4A of Service tax rules, 1994 towards purchase of input services & input invoice, bills or as the case may be, challan for the purpose for distributing the service of the service tax paid on the said services to such manufacturer or producer or provider, as the case may be.
28 April 2010
An office of the manufacturer or provider of output service who receives invoices for the procurement of input services and issues invoices for the purpose of distributing the credit of service tax paid to such other manufacturer or provider of output service is an 'input service distributor'.
28 April 2010
An ‘input service distributor’ is an office or establishment of a manufacturer of excisable goods or provider of taxable service. It receives tax paid invoices/bills of input services procured (on which CENVAT credits can be taken) and distributes such credits to its units providing taxable services or manufacturing excisable goods. The distribution of credit is subject to the conditions that,- (a) the credit distributed against an eligible document shall not exceed the amount of service tax paid thereon, and (b) credit of service tax attributable to services used in a unit either exclusively manufacturing exempted goods or exclusively providing exempted services shall not be distributed. An input service distributor is required (under section 69 of the Act, read with notification no.26/2005-ST) to take a separate registration.
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