Input service tax credit

Rajesh Kumar Dixit (CA Practice ) (21 Points)

26 September 2012  

We are going to Procure 100 Microsot windows login Licence from Regsitered Dealer for our business use, we are service provider and manufacturer.

The Dealer is charging Gujarat VAT and Service Tax on the above Microsoft Windows software Licence.

Query:

01. Can we avail Gujarat VAT Credit on the amount charged by dealer.

02. Can we avail Service Tax Credit on the amount charged by Dealer.

 

Ground of Eligibility:

All computers are installed and situated in our factory premises and usded for business puropose by various users in different departments i.e. marketing, planning, project, manufacturing, accounts & purchase.

in our books of accounut we will capitalise the same as Instagible assets as software & Licence as per guidekline revised schedule VI.

Clarfication is requested on eligibility of :

A) Gujarat VAT Credit

B) Service Tax Charged (on service part i.e installation & after sale services upgardation etc)

Rajesh Dixit