TaxTMI 
TaxTMI 
Sir, we are consulting engineers and using various engineering softwares for providing output service to clients. Please clarify that are softwares covers in the definition of "capital goods" or not as per the cenvat credit rules? and if not can we eligible to take cenvat credit on softwares or not. Please suggest.
Cenvat Credit
20 Jul 2013 
2 Replies 
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Software classification: not capital goods; eligible as input for cenvat credit for output services under rule 2(k).
Software used by consulting engineers is not covered by the definition of capital goods and thus cannot be taken as a capital item for cenvat credit. However, software used in providing output services may be claimed as an input for cenvat credit, subject to its precise classification and factual use, so further factual detail or professional advice is recommended to determine entitlement. (AI Summary)
Software used by consulting engineers is not covered by the definition of capital goods and thus cannot be taken as a capital item for cenvat credit. However, software used in providing output services may be claimed as an input for cenvat credit, subject to its precise classification and factual use, so further factual detail or professional advice is recommended to determine entitlement. (AI Summary)