Credit of excise duty paid on purchase of software

[Guest]

if i am a service provider which is taxable service under service tax Act. I am purchasing a software on which Excise duty will be charged by the seller. Can we avail the credit of this Central excise Duty for paying service tax due to me.

[Surender Gupta]

If the software bears the burden of excise duty or CVD in the case of import, and the same is being used for providing your output services, indeed, you can avail the Cenvat Credit.

[Dinesh Kumar T S]

What is the case if the the software is purchased domestically? Whether cenvat credit is available?

AI Summary

Cenvat credit entitlement on excise bearing software purchases allows service providers to claim input duty credit for taxable services. Credit for central excise or countervailing duty on purchased software is available where the duty is borne by the software and the software is used in providing the service provider's taxable output services; domestic purchases attracting excise duty are similarly eligible when the duty is charged and borne and the software functions as an input to the taxable service.