Service tax on assest

Hi,

I have one query my company purchase one software, the seller of the software raise invoice with serivce tax, can i take that serivce tax amount as input credit, if it taken under what heading i take the input

Please clarrify

 

Regards

Sakthivel

 

Replies (1)

software falls under chapter 85 of the first schedule of the excise tariff act so its a capital goods as per cenvat credit rules 2004. As per cenvat credit rules only 50% of the credit can be taken in the same financial year when the goods were received and remaining 50% in the subsequent fiannacial year.
 The Account for taking 50% credit in same financial year will be Service tax inward on Capital goods and balance 50% credit will be entered in account Deferred Service tax on capital goods which can be availed next year
 

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