The meaning of input service distributor?

The meaning of input service distributor?

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As per definition given in the Rule 2(m) of the CENVAT Credit Rule 2004, Input Service Distributor means the office of the manufacturer/producer or of output service provider who receives the invoices for purchase of services from the output service provider under Rule 4A of the Service Tax Rules 1994. MANNER OF DISTRIBUTION As per Rule 7 of the CENVAT Credit Rules 2004, the input service distributor can not distribute CENVAT Credit of Service Tax in excess of the amount paid, to its unit engaged in manufacturing/providing output service and secondly the credit of Service tax can not be distributed attributable to the unit exclusively engaged to manufacturing exempted goods or providing exempted output services

Answered on July 20, 2017.
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Gen GST