Service Tax Credit on Intangible Goods

We have capitalised the designing and engineering services as an intagible Assets. Yet we have not paid the said amount to service provider. so, how much credit can we take by the end of this financial year?? Can we take the credit even if we have not paid for the said services??? Please advice....
Replies (4)

NO , input credit cannot be taken until and unless you have not paid the total amount.

50% credit can be taken when it is paid and rest in subsequent years..

Yes, Ritesh is right.. Input credit can not be taken until the payment is made for that service.

Agree with Ritesh and Pinky on non availability of credit before payment.

But condition 50% credit does not apply for this case since above service does not come under deifinition of Capital under excise.

You can take full credit once you pay the amount

Regards

Dayananda

Yes , as per the text of law..the services of capital nature are not kept under capital goods as defined in central excise so, dayanada is right you can take 100% credit in same year.

I skipped that it was a service related capital expenditure query..

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