Payment of service tax through cenvat - other category, Service Tax

[ranganath shenoy]

Our client is purchasing(or is rather licensed to use) ORACLE-E Business Suite Software,which is more or less a packaged software. The same is required for the purpose of integration with the larger information system to be put in place which includes accounting as well .The software is not sold by ORACLE directly but is being sold by their Business Partner.Therefore,this business partner is charging Service Tax and not Excise Duty.Because of the uncertainty,they are also charging VAT. Now, Service tAX is being charged under Information Technology Service.Is it possible to avail CENVAT CREDIT to pay-off liability under some other category of out put Services.Assuming that the information system is also being used in rendering NON-TAXABLE service or other tranasactions which are nor service at all(like investment etc. of surplus funds,is it necessary to follow the proportionate formula

Posts / Replies

[DKKOTHARI]

The software is capital input, so CENVAT will be allowed fully in two years. in my view it will make no difference even if some services rendered are not taxable and softwar is used for such services also.

[ajaykumar jha]

what is disallowed expenses in Transmission and tower line. and brief details hire charges vehicle and tools and plant. and advance for site expenses.