Cenvat on service tax

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SHAMBA PEDNEKAR (Querist)
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16 August 2012 Can CENVAT on service Tax on software (SAP-ERP being used in production,planning & control) be taken. Is this CENVAT to be taken as Capital goods i.e.. 50% + 50% or it can be taken as 100% . Being software it is not fitting in capital goods defination.

CA Saiyum khan

CA Saiyum khan (Expert)
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16 August 2012 It can be taken @100% in the year of expenditure incurred. It has to be assured that credit taken amount has to be reduced from the amount of capitalisation.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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16 August 2012 50%- 50% is only for cenvat credit of excise duty and not for service tax.

Even if you book it as capital goods it will be considered as input service only and 100% credit will e allowed in the current year only.

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