Input service distributors

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Rajesh274

Rajesh274 (Querist)
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06 July 2010 Dear all,

what is input service distributors?
thanks in advance.............

CA Sanat Pyne

CA Sanat Pyne (Expert)
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06 July 2010 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 manufacturer or producer of final products or provider of output service, which receives invoices 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 distributing the credit of service tax paid on the said services to such manufacturer or producer or provider, as the case may be.

CA Gangadhar Mishra

CA Gangadhar Mishra (Expert)
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06 July 2010 agree

Akhil Agrawal

Akhil Agrawal (Expert)
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07 July 2010 Well in a more general terms, suppose a HO is there & it has 4 factories. Now as in Indirect Tax a Factory gets registered & not an Office or HO.

Now suppose a service is provided in all 4 factories but the bill is in name of the Company & addressed to the HO. In order to take the credit of the Service tax, HO becomes an ISD & distributes the credit.

Mind u if any of the factory is producing an exempted product then it will not get any input benefit.however the distribution criteria depends on the ISD, HO can distribute in the proportion as it wants.

CA Sanat Pyne

CA Sanat Pyne (Expert)
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07 July 2010 well explained.

BALU V

BALU V (Expert)
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07 July 2010 Not only the services received by the factories but also the services received by the HO itself like CA Fees etc. can be distributed if the output services are taxable

BALU V

BALU V (Expert)
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07 July 2010 Not only the services received by the factories but also the services received by the HO itself like CA Fees etc. can be distributed if the output services are taxable

BALU V

BALU V (Expert)
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07 July 2010 Not only the services received by the factories but also the services received by the HO itself like CA Fees etc. can be distributed if the output services are taxable

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