Input Service - Computer Networking

[Krishan Gopal]

Dear Sir, Please advise - as per rule 2 (1) of Cenvat Credit Rules 2004 the definition of input service of computer networking- whether includes AMC charges of computer, repair charges of computer, AMC of server used for computer, AMC charges of anti virus used for computerRegards, K. Gopal

[YAGAY andSUN]

Dear Krishan Gopal,

Computer Networking is a very broad term, which includes Networking of computers with servers, routers and switches, AMC of servers/computers and up-gradation of anti virus definition through net/cloud or through physical medium such as DVD, CDs or pendrives.

You may avail the CENVAT credit on such taxable services provided by the service provider. It is within the scope of phrase 'Computer Networking'.

Please also get clarification from the Commissioner of Service Tax and if possible go for advance ruling if the amount involved in this transaction is substantial.

Regards

Team YAGAY & SUN

(Indirect Tax Consultants)

AI Summary

Computer Networking input service can include AMC and antivirus updates, permitting CENVAT credit subject to confirmation. The term Computer Networking under Rule 2(1) of the Cenvat Credit Rules, 2004 is broad and includes networking and related maintenance services; AMCs for servers and computers, computer repair charges, and antivirus updates delivered via network or physical media fall within Computer Networking and, if taxable and compliant with Cenvat conditions, may be eligible for CENVAT credit, subject to formal clarification or advance ruling when necessary.