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TMI BlogService Tax CENVAT on Software Purchase for R&D PurposeX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear Sir, we have purchased a Software for R D Purpose software company has charged professional service charges charged Service tax on his invoice. my query is : Can we entitable to avail CENVAT Credit of the same or Not. Please give your legal opinion and reference of rule. Regards, Rahul Patel - Reply By Pradeep Khatri - The Reply = Dear Rahul, You may avail the CENVAT credit on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he software as Input Service. Please check the definition of Input Services in this regard. Software Eligible if in relation to manufacture or provision of taxable goods/services, modernization or repairs of factory or office, storage, recruitment and quality control, accounts, audit, financing, sales promotion, computer networking - Reply By Velkumar S - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Reply = Dear Rahul, Any input service should satisfy the definition of input service as per Rule 2(l) of CCR, 2004. In my opinion, software used for R and D purpose by a manufacturer is neither used in relation to manufacture nor in relation to any taxable output service and hence not qualify as input service. This view would change and will become a input service, if R and D is the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the organization and the income is received from sale of result which is liable to service tax. Regards, Velkumar S - Service Tax CENVAT on Software Purchase for R&D Purpose - Query Started By: - Rahul Patel Dated:- 1-3-2014 Service Tax - Got 2 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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