ISD
This query is : Resolved
22 December 2010
What is the concept of input service distributor, actually i read law but it was confusing. so please let me know it practically by some of the examples.
Shyam Lal Naik
(Expert)
22 December 2010
A service tax assessee/central excise assessee may have more than one premises/office.
Some of the office may be undertaking only administrative functions and the other premises are engaged in production/rendition of service.
The administrative office(commonly referred as Head Office, Corporate Office, Regional Office) normally receives bills for various input services and makes payment therefor. For example, an organisation may have a centralised system for insurance of equipments and payment thereof, although such services are actually consumed/utilised at the factory/branch.
The Service tax paid on such input services are available as Cenvat Credit to the factory/branch office. The cenvat can not be used at the Head Office as no production/provision service takes place at such office.
The concept of ISD is a mechanism to enable the Head Office/Administrative Office to distribute the Service tax paid on input services to the respective factory/offices providing office.
Some of the office may be undertaking only administrative functions and the other premises are engaged in production/rendition of service.
The administrative office(commonly referred as Head Office, Corporate Office, Regional Office) normally receives bills for various input services and makes payment therefor. For example, an organisation may have a centralised system for insurance of equipments and payment thereof, although such services are actually consumed/utilised at the factory/branch.
The Service tax paid on such input services are available as Cenvat Credit to the factory/branch office. The cenvat can not be used at the Head Office as no production/provision service takes place at such office.
The concept of ISD is a mechanism to enable the Head Office/Administrative Office to distribute the Service tax paid on input services to the respective factory/offices providing office.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Accounting treatment of AMC alongwith the purchase of Laptop
- Unable to File TDS Q2 Return – New TRACES Portal Error
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Transfer of Physical Stock Between Two Proprietorship Concerns
- MSME disclosure and disallowance
- Taxation of crypto futures in India Fy 2026- 2027
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
