Cenvat on computer installed in office of service provider?

[devinder bagia]

Dear all,

My client wants to take cenvat credit of computers purchased and installed in the office of service provider. The computers are used for providing output service of call center. Whether it is admissible to avail credit specially when rule 2(a) of  CCR, 2004 talks about only manufacturer not allowed to avail credit if capital goods are installed in office of manufacturer.

[YAGAY andSUN]

Capital goods installed at service providers office for providing output services are eligible for CENVAT credit.  Further, kindly also refer Rule 7A of the Cenvat Credit Rule, in the case of ISD.

AI Summary

Cenvat credit on office computers allowed for service providers supplying call centre services; ISD allocation may apply. Cenvat credit is available for computers and other capital goods installed in a service provider's office when used to provide output services such as call centre services. The manufacturer specific restriction in the Cenvat Credit Rules does not preclude service providers from claiming credit for office installed capital goods. Where input services are apportioned, the Input Service Distributor mechanism under the Cenvat Credit Rules may apply for allocation and compliance purposes.