cashekar (Chartered Accountant) 10 June 2008
we have a one software company . are we eligible to take service tax credit on recruitment charges paid to recruiting agent.
If the services taken fall under the input service definition then you can take credit with regard to the same.the defintion of input service states that 'any service (i) used by a provider of taxable service for providing an output service .....
So you can take credit with regard to service tax paid on recruitment charges paid for software development provided the personnel are used to produce some software.