Input on Service Tax of Capital Asset (software) is fully available in the same year?
Prasad
(Sr. Manager)
(617 Points)
Replied 31 May 2011
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 31 May 2011
1st of all softwares are revenue expenditure in most cases,
for more details please follow up
/forum/software-intangible-or-a-fixed-asset-12775.asp
depending on merit of software in use, the input credit would be taken as input services (100% on payment of service) or capital asset.(50% in 1st year and balance in 2nd year)
CA Unnikrishnan Nair N
(Chartered Accountant)
(2083 Points)
Replied 01 June 2011
Capital goods is defined under Rule 2(a) of The CCR. Software does not come under this definition.
CA Mohit Ghabrani
(Consultant)
(112 Points)
Replied 01 June 2011
Ya you can take the full credit of service tax upon payment of it as it is not covered in definition of capital goods.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 01 June 2011
Pl check the classification in the invoice. Normally not under chpater 84/85/90 etc. However as an input service it could be availed as long as the same is used for provding taxable services or involved with manufacture. If service then 100% available.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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