Input Service Distributor – Sec 2(61)
- “Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices issued under sec. 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same PAN as that of the said office;
- There is no restriction by law that an ISD must be the head office. Further, the law also places no limit on the number of offices that can be registered as ISD. Therefore, a single company may choose to have multiple regional offices as ISD based on its business requirements;
- Each type of tax must be distributed through a separate ISD invoice. However, there is no requirement to issue ISD invoices at an invoice-level (received from the supplier of the service).