Input Service on Capital Asset

Input on Service Tax of Capital Asset (software) is fully available in the same year?

Replies (5)
Hi Ganesh I my opinion it is avaliable immedaitely on payment to vendor just like any other input service.

1st of all softwares are revenue expenditure in most cases, 

 

for more details please follow up 

/forum/software-intangible-or-a-fixed-asset-12775.asp

 

depending on merit of software in use, the input credit would be taken as input services (100% on payment of service) or capital asset.(50% in 1st year and balance in 2nd year)

Capital goods is defined under Rule 2(a) of The CCR. Software does not come under this definition.

Ya you can take the full credit of service tax upon payment of it as it is not covered in definition of capital goods.

Pl check the classification in the invoice. Normally not under chpater 84/85/90 etc. However as an input service it could be availed as long as the same is used for provding taxable services or involved with manufacture. If service then 100% available.

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