banner_ad

Input Service Distributer

Service Tax (Legacy) 1055 views 2 replies

What is the meaning of Input service Distributor

Replies (2)

As per Rule 2 of CCR 2004, an ISD means

"an office of Manufacturer of Final Products or Provider of Output Services,

which receives Invoices towards purchase of Input Services

and issues Invoice, Bill or Challan

for distributing the credit of service Tax paid on said Service."

In simple terms, what happens sometimes,Invoice is raised in the name of Head office but Services are actually received in the factories or premises of Service Provider

In addition, there are bills for certain Services which are not specific for any Factory/Premises such as Advertisement, Market Research etc. which would also be received only in Head office.

Main issue in such cases is as to what would be the procedure for passing on the credit of Tax in such Situations.For distribution of Such Credit, Head office would be called ISD & it will have to issue Invoices on Its Factories where Services are receied for the distribution of Credit.However ISD would have to ensure taht Total credit so distributed does not exceed the amount of service Tax paid by ISD

Such Head Office would have to obtain Service Tax Registeration as ISD. 

a complete answer by mr. Ritesh


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details
Company
21 May 2026
Associate

PWC

Kolkata

CA

View Details
Company
16 May 2026
Account & Audit Asst

RAHUL KHANDEBHARAD & ASSOCIATES

Nashik

B.Com

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details