Cenvat credit on purchases of software for following purpose is eligible?
1) Machines controlled by computer programming
2) Operating systems installed On PC (used by departments like HR, Accounts, Administration, PPC, Dispatch, Stores and others)
3) ERP system installed on PC on above mentioned departments
Please guide
Santosh M.
CENVAT Credit Eligibility on Software Purchases: Machine Control, ERP, and Operating Systems Linked to Manufacturing or Services A discussion was held regarding the eligibility of CENVAT credit on software purchases. The query focused on software for computer-controlled machines, operating systems for departmental PCs, and ERP systems. One response confirmed CENVAT credit eligibility for software controlling machines. For operating systems and ERP systems, credit is available if linked to manufacturing, taxable services, or related activities like modernization, quality control, and procurement. However, caution was advised due to potential departmental objections. Another response highlighted that credit is applicable if taxable services are provided or goods manufactured. Credit under 'Computer Networking' was also suggested for consideration. (AI Summary)
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