07 March 2012
oftware 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.
Capital goods can be treated as an input if it falls under the defination of inputs in Rule 2(k) of the cenvat credit rules and the only condition is it must be used in manufacturing or providing of output services.
in that case 100% can be taken in the same financial year.Thanks
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