17 July 2010
Input service distributor is a person who consumes the taxable services and makes payment for the services. they inturn distribute the tax paid on the service to other units of the same concern so that the later concern gets the credit of the same for eg branch A of concern xyz ltd receives the audit bill with service tax charged on that. suppose they are not able to utilise the same then it can be transferred to some other branch of the same concern. for this branch A needs to get registered as input service distributor registration of 9 lakhs is for other ordinary service providers