In an elearning company (animation content development), in the bills of purchasing the required software like Adobe products, there exists service tax component also which is paid to the seller. Can we reduce that paid amount of service tax in the amount that is collected from the customer which is charged for rendering service in developing animation content using that software?. I mean, is the purchase of software which is used to give the service, considered as Capital goods? And can that be adjusted in the next FY?
If yes, can it be shown in I 3.1.2.2 of ST3 return (CENVAT credit taken on Capital goods) and can that be utilised in next FY.
Please assist.
CAclubindia
