18 July 2016
First please make clear whether it is "Input Service Provider" or "Input Service Distributor" i.e. ISD. An ISD is basically HO/Regd Office of a manufacturing unit / service provider unit. At these office many common services are availed (after payment of Service Tax). ISD may take Cenvat Credit of such Service Tax paid & transfer the same to concerned units where excisable goods are manufactured or taxable services are provided. The said Cenvat Credit (taken by ISD) may be utilized against Excise Duty/Service Tax payable at such manufacturing units / places from taxable services are provided. Relevant rule is Rule 7 of CCR 2004.
CAclubindia
