Cenvat on service tax
This query is : Resolved
SHAMBA PEDNEKAR
(Querist)
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
(Expert)
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
(Expert)
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.
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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