Dear friend > “ Input Service Distributor ” Input Service Distributor has been defined in Rule 2(m) of Cenvat Credit Rules, 2004. The main objective of Input Service Distributor (ISD) is to receive and distribute the Cenvat Credit to the eligible offices / departments / branches / units of the service provider or manufacturer. Input Service Distributor is an intermediary or an office which manages the business of manufacturer or producer of final products or output service provider and undertakes to perform or performs the following –- --receives invoice issued under Service Tax Rules toward purchase of input services. --Issues invoice / bill /challan for the purpose of distributing the credit of service tax paid on such services to manufacturer/producer or service provider. input service distributor is an office or premises of the manufacturer or taxable service provider which receives bills/invoices etc., of input services. The input service distributor can distribute the eligible credit to any unit of the manufacturer or any premises/office of taxable service provider. Input service distributor is the office of the manufacturer of final products or the provider of taxable services. The residence of any employee of manufacturer or service provider or its guest house can not be called input service distributor (ISD). Any ISD can distribute only the service tax credit and not the central excise or customs credit.
Hie Uma, **Meaning of Input Service Distributor :-** Input Service Distributor is an intermediary or an office which manages the business of manufacturer or producer of final products or output service provider and undertakes to perform or performs the following –- receives invoice issued under Service Tax Rules toward purchase of input services. Issues invoice / bill /challan for the purpose of distributing the credit of service tax paid on such services to manufacturer/producer or service provider.
MEANING OF INPUT SERVICE DISTRIBUTOR An input service distributor means An office of the manufacturer or procedure of final products or provider of output service. Without registration the input service distributor could not distribute the credit.Hence the input service distributor shall make an apllication An input service distributor means which receives invoices towards purchases of input services and issue invoice,bill or challan. For the purpose of distributing the credit of service tax paid on the said services to the manufacturer or producer or provider. Thanks
Hiiii friend..... **ISD - Input Service Distributor** “The definition of the input service distributor clearly says that he is not merely a dealer. The input service distributor has to be an office of the manufacturer or producer of final products or provider of output service who will distribute the credit to his manufacturing units or service providing units as the case may be. The dealer buys the manufactured goods on which duties have been paid and passes on the actual duty paid by issue of an invoice. He does not take any responsibility as regards eligibility of Cenvat credit by his buyers. He may not even be aware as to whether buyer avails the Cenvat credit or not. He does not produce any input services which he is required to distribute among others. Whereas an input service distributor independently receives invoice and in fact he could be compared to a buyer of goods or service from the manufacturer or an output service provider. The concept of input service distributor has been introduced in view of the fact that definition of input service includes “includes services used in relation to setting up, modernization, renovation or repairs of a factory, premises of provider of output service or an office relating to such factory or premises, advertisement or sales promotion, market research, storage up to the place of removal, procurement of inputs, activities relating to business, such as accounting, auditing, financing, recruitment and quality control, coaching and training, computer networking, credit rating, share registry, and security, inward transportation of inputs or capital goods and outward transportation up to the place of removal”. The definition shows that many of services could be performed in places other than where the manufacturer or receiver of the service might have been located and quite often a single manufacturer may be having several branches and services can be received in several places.” Thanks & Regards,
> `Input service distributor` INPUT Service Distributor means an office of the manufacturer or producer of final products or provider of output service, which receives invoices towards purchases of input services from the provider of input services and further, distribute the Input Tax Credit by issuing invoices, bill or challan to such manufacturer or producer or provider.