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Service tax on software

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Guest

A vendor has provided some Software and lavied 12.36% Service tax and 5% output Vat.

on the invoice it is indicated (Service: information Technology Software Services)

Can the recipient of the Software can take the Input credit of Service tax,

if can not be taken any notification is there.

Its urgent

Thanks

Replies (2)

CA Pooja Agarwal

Chartered Accountant

1885 Points Posted on 11 July 2013

information technolgy software is elgible to be classified as input service and avail cenvat credit if the following is satisfied

software is used in relation to manufacture or provision of taxable goods/services, moderniaation or repairs of factory or office, storage, quality control, recruitment, accounts, audit, sales promotion, procurement of inputs, legal services, financing, computer networking

Guest

Posted on 11 July 2013

Pooja ji, our company is a Shipping company and purchased a server software from a software company can my company can take the input credit of service tax which is lavied on software.