TaxTMI 
TaxTMI 
How an Input Service Distributor pass on Credit of Service tax to its branch or unit..??
Input Service distributor
27 Apr 2017 
4 Replies 
2055 Views Asked by
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Input Service Distributor credit distribution: eligible common credits apportioned to units with invoices, documentation, and registration requirements.
An Input Service Distributor must be registered, issue invoices to receiving units, and distribute only eligible service tax credit: specific credits go to the related unit while common credits are apportioned-ordinarily by turnover-with adjustments where units have both excisable and non-excisable activity; only credits attributable to excisable goods are distributable. ISD must maintain supporting workings and invoices (preferably received at the ISD address), file returns, and ensure correctness to avoid audit disallowance, interest, and penalties. (AI Summary)
An Input Service Distributor must be registered, issue invoices to receiving units, and distribute only eligible service tax credit: specific credits go to the related unit while common credits are apportioned-ordinarily by turnover-with adjustments where units have both excisable and non-excisable activity; only credits attributable to excisable goods are distributable. ISD must maintain supporting workings and invoices (preferably received at the ISD address), file returns, and ensure correctness to avoid audit disallowance, interest, and penalties. (AI Summary)