Who is Input Service Distributor in Service Tax

In case, a business has number of branches, it may happen that

Expense Bill of such branch may be received by some other branch.

Also, an expense bill may be received which may be common to more than one branch.

In this case, the branch receiving the invoice can distribute the credit to other branch/branches by

Registering as Input Service Distributor

And

Issuing Invoice to Other Branch/Branches

What is Input Service Distributor

As per Rule 2

It means a manufacturer or service provider

who receives Service tax Invoice for purchase of Input Services

and issues bill/challan for distributing credit

to other manufacturers/service provider