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
Can CENVAT credit be claimed on service tax for software used in R&D? Examining Input Service criteria. &D A discussion on whether CENVAT credit can be availed for service tax charged on software purchased for R&D purposes. One participant suggests that CENVAT credit may be claimed if the software qualifies as an Input Service, as defined by relevant regulations, and is used in relation to manufacturing or taxable services. Another participant argues that if the software is used solely for R&D and not directly related to manufacturing or taxable services, it may not qualify as an Input Service unless R&D is the organization's primary business generating taxable income. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
