As per the given facts, Input Service Distritor is the office of the manufacturer or service provider who receives invoices and avails the credit on such input services and pass to the such manufacturer or service providers.
The input service distributor can distribute the availed credit in any proportion but subject to the following conditions:-
1. The credit distributed does not exceed the amount of service tax paid on input services.
2. credit of service tax attributable to service use in a unit exclusively engaged in manufacture of exempted goods or providing of exempted services shall not be distributed.
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