I am not getting proper documentation for Notification Service Extension's provisioning profile. But as per my knowledge, the Notification Service Extension has it's own bundle id, it must be set up with it's own App ID and provisioning profile.
Please clear this doubt that do i need to use distribution provisioning profile for notification service extension or not?
By going through the docs i found that with different bundle id's we need to create different profiles.
I solved my problem by creating two profiles. I hope this will help others.