Cenvat credit for Software Trader

This query is : Resolved

Ramalinga H.B (Querist)
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28 October 2010 Hello,
Please clarify my doubt. My client is a trader of Packed/Customised Software. The supplier of the software (who is also a trader) charging Service tax in the bill. Can my client collect the same service tax from the end user and adjust the cenvat credit?. If yes kindly quote the notification/circular details on this. My client wants to raise the invoice with service tax break up in the bill!

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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29 October 2010 Supplier should not charge. In case he has, then you may seek the clarification from the dept to pass on the same. Some traders are however doing this but may not be in line with the porovsions.