Input Service Distributor

[UMESH KUMAR]

Dear sir,

What is Input Service Distributor

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

AI Summary

Understanding Input Service Distributor Role in Distributing Service Tax Liabilities Under Rule 7 of Cenvat Credit Rules, 2004. An individual inquired about the concept of an Input Service Distributor (ISD) and its role in distributing service tax liabilities. Respondents explained that an ISD is an office within a manufacturing entity that distributes availed common services to manufacturing units liable for excise duty, using a turnover ratio for credit distribution. They emphasized the importance of Rule 7 of the Cenvat Credit Rules, 2004, which outlines the distribution method. Additionally, it was noted that an ISD can allocate unit-specific credits in line with these rules.