AVAILMENT OF CENVAT CREDIT ON INPUT SERVICES BY SSI UNITS

[VINOD KUMAR]

DEAR EXPERT PLEASE REPLY WHETHER A SSI UNIT REGISTERED UNDER CENTRAL EXCISE CAN AVAIL CENVAT CREDIT OF INPUT SERVICES:-1. BEFORE CROSSING LIMIT OF Rs. 150 LACS. 2. AFTER CROSSING THE LIMIT OF ₹ 150 LACS. 3.IS CENVAT CREDIT ON INPUT SERVICES REQUIRED TO BE REVERSED BEFORE AVAILING SSI EXEMPTION IN NEXT YEAR.

[Arun Kumar Singh]

If SSI unit are starting the paying of duty on final product then they can avail the cenvat credit on input and input services. Accumulated input services cannot be allow from the period of SSI exemption.

[Mahir S]

Also refer SSI exemption, for units not availing CENVAT credit - 008/2003 - Dated 1-3-2003 - Central Excise - and also Notification No. 33/2012 - dated 20.06.2012 - Service Tax, for all the clarifications.

AI Summary

Availment of CENVAT credit on input services: eligibility arises when an SSI unit begins paying duty, exemption-period credit excluded. SSI units that begin paying duty on final products may avail CENVAT credit on inputs and input services from the date duty is discharged; credit attributable to periods under SSI exemption is not admissible. Accumulated input service credit from exempt periods cannot be allowed, and relevant circulars and notifications should be consulted for compliance and any reversal requirements before claiming SSI exemption later.