Can anyone explain me concept of "Input Service Distributor' under Service Tax?
Satvir Singh (Newly minted CA) (1733 Points)
26 October 2010Can anyone explain me concept of "Input Service Distributor' under Service Tax?
sahil
(LEARNER)
(371 Points)
Replied 26 October 2010
lets take an example A head office having 4 units A,B,C,D Unit A & B r doing Manufacturing & Unit C& D providing services. Now H.O hires advertising Agency for advertisement of Units A& B products & C& D services. as Ho hires Adv.Agency so agency make a invoice(having Service tax) for Ho & not for units, But Ho is not mfr nor it providing services so The Service tax paid by HO to Agency but how HO can utilize such Service tax so therefore Ho make BILLs/challan for unit ABCD & through this challan Paasses the Service tax credit to ABCD.so here HO is known as Input Service distributor (ISD)
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