Input Service Distributor

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..... service. Provision has been made to avail Cenvat credit of services received and paid at head office/ regional level. Such head office/ regional office can be registered as Input Service Distributor and it can issue invoice on the manufacturer or service provider. What is the manner of distribution of input services in case of ISD? [Upto 31.3.2016] Rule 7 of the CCR, 2004 The distribution should be as follows: Credit distributed should not be more than credit of input service tax available. Credit of service tax attributable to services used by one or more units exclusively engaged in manufacturing of exempted goods or providing of exempted services shall not be distri .....

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..... Manufacturing units Units providing output service Outsourced manufacturing unit. The conditions for distributing cenvat credit are as follows: The credit distributed shall not be more than credit of service tax available. When credit is attributable to services used wholly one unit in this case credit shall be distributed wholly to that unit. When credit is attributable to services by more than one unit when credit of service tax is attributable to service used by more than one unit (but not by all the units), the credit shall be distributed on pro rata basis on turnover of such units during the relevant period. The turnover of operational units only must be considered. When credit is attributable to services .....

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..... tributor. the 'relevant period shall be, - (a) if the assessee has turnover in the financial year preceding to the year during which credit is to be distributed for month or quarter, as the case maybe, the said financial year; or; (b) if the assessee does not have turn over for some or all the units in the preceding financial year, the last quarter for which details of turnover of all the units are available, previous to the month or quarter for which credit is to be distributed. outsourced manufacturing unit means a job-worker who is liable to pay duty on the value determined under rule 10A of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 on the goods manufactured for .....

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