Input Service Distributor

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.... 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 distributed. * Credit of service tax attributable to services used wholly in a unit shall be distributed only to that unit * Credit of service tax attributa....

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.... 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 by all the units - when credit of service tax is attributable to service used by all the units, the credit shall be distributed to all the units on pro rata basis on turnover. The turnover of operational units only must be considered. * The cenvat credit distributed to outsourc....