Cenvat credit on Softwares as capital goods

CA Gaurav Rastogi (Finance & Account Officer)   (189 Points)

16 July 2010  

Dear All,

My query is whether 'Software' is a capital goods under CENVAT credit rules.

If YES, then cenvat credit of service tax paid on it 50% in the current year and 50% in next year.

If NO, then, whether cenvat credit of service tax paid on it can be availed as input service 100% in the current financial year itself.

And whether Output service provider can avail Cenvat Credit on software used in office like ERP or Tally etc