Input Service Distributor, Service Tax

[UMESH KUMAR]

Dear sir,

What is Input Service Distributor

How to distribute to our division and adjusted with our service tax liabilities.

Posts / Replies

[Ganeshan Kalyani]

Sir, Input Service Distributor is an office of manufacturer where common services are availed. The services so availed is distribution to all the manufacturing units liable for payment of excise duty. The credit is distributed on turnover ratio. Thanks.

[KASTURI SETHI]

Sh.Umesh Kumar Ji,

I fully endorse the views of Sh.Ganeshan Kalyani, Sir.

[KASTURI SETHI]

Pl. also go through Rule 7 (b) (c)(d)(e)(f) of Cenvat Credit Rules, 2004. These are very important.

[Ganeshan Kalyani]

Yes sir the rules are essential as they provides the manner in which the credit should be distributed. Thanks.

[surya narayana]

Dear Friends,

An ISFD can also distribute the unit specific credit to the relevant unit in addition to the common credit in terms of Rule 7 of CCR,2004 and the formulae prescribed therein for common credit distribution.

Best Regards

Suryanarayana