TaxTMI 
TaxTMI 
Dear sir,
What is Input Service Distributor
How to distribute to our division and adjusted with our service tax liabilities.
Input Service Distributor
27 May 2016 
5 Replies 
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Input Service Distributor enables allocation of input service credit among constituent units for adjustment of service tax liabilities.
An Input Service Distributor is an office that allocates Cenvat/service tax credit for common input services among constituent manufacturing or taxable units, typically by a turnover-based allocation. The Cenvat Credit Rules prescribe the procedural framework and formulas for apportioning common credit. An ISD may also transfer unit-specific input service credit directly to the relevant unit, subject to the rules and record-keeping required for adjustment of service tax liabilities. (AI Summary)
An Input Service Distributor is an office that allocates Cenvat/service tax credit for common input services among constituent manufacturing or taxable units, typically by a turnover-based allocation. The Cenvat Credit Rules prescribe the procedural framework and formulas for apportioning common credit. An ISD may also transfer unit-specific input service credit directly to the relevant unit, subject to the rules and record-keeping required for adjustment of service tax liabilities. (AI Summary)