input service distributor

As a percondition for availing CENVAT Credit, service invoice should be issued on the address of that location from where taxable goods and services are provided by that company.

But in few cases services are procured by Head office for PAN India operations like STAT Auditor, Management Consultants, Advertisements etc.However, manufacturing or services are rendered from different locations say head office is in GGN but manufacturing is in Noida or Punjab.

In such a situation Head office will register itself as Input Service Distributor and distribute credit amoung locations (by mean of invoices) so that credit can be utilised otherwise it will lapse.