Ccr
avneesh
(Querist) 28 July 2013
This query is : Resolved
a partnership firm is dealer of hero moter
cycle. there are two activities of this firm-
1) sales of motor cycle
2) servicing of motor cycle
Q.- the firm purchase a common computer software from hero moto agency for use in showroom for sales purchase of motor cycle and also for service center - the firm is paying service tax on servicing of motor cycle in service center . then the firm can book CCR on service tax paid on such software
R.V.RAO
(Expert) 02 March 2014
For CENVAT credit of service tax paid on services used in business; the credit is undoubtedly admissible.
It is a logical conclusion that manufacturer/output service provider can take credit of the service tax paid on all activities related to business, which are specified in the expanded inclusive definition of “input service”.
source:http://allindiantaxes.com/ait-news-272.php
but your common computer software is used for sales and services both. so take the input tax credit related to servicing portion (by revenue ratio).
