Service tax credit for SSI Unit , Service Tax

[sukhvinder singh]

Dear Sir ,

Please clear if a assessee is working under SSI Exemption , what about the Service tax credit during that period, please provide with relative case law and notifiction

 

Thnaks

Posts / Replies

[rajavel calaimany]

Dear Sir,

You are not eligible to avail any cenvat credit when you are availing the value based SSI exemption. However when you cross the threshold limit of Rs.1.5 Crores you can avail the credit of service tax paid on services received on or after the date of crossing the threshold limit.

 

By

cals

[R.S. Mangal]

There are divergent views on availment of service tax credit during SSI Exemption. Recently Ahd Tri has held that there is not bar of taking credit of input service during SSI exemption. However the department still may not agree and can give SCN on this.