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.
CENVAT Credit Eligibility Confirmed for Computers in Service Provider Offices Under Rule 2(a) CENVAT Credit Rules 2004 A client inquired about the eligibility of claiming CENVAT credit for computers purchased and installed in a service provider's office, specifically for a call center. The concern was whether Rule 2(a) of the CENVAT Credit Rules, 2004, which restricts manufacturers from availing credit for capital goods installed in their offices, applies to service providers. The response clarified that capital goods installed at a service provider's office for delivering output services are eligible for CENVAT credit. It was also suggested to refer to Rule 7A regarding Input Service Distributors (ISD) for further guidance. (AI Summary)
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