TaxTMI 
TaxTMI 
We are one of the units registered under Excise Duty and Service tax and availing SSI exemptions for manufacturing. We are also providing services like erection, commissioning and installations and charging service tax. Shall we eligible for taking Input service credit for set-off against service tax payment?
Is Input services available for units under SSI Exemptions
07 Feb 2015 
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Input service credit availability: units availing SSI exemptions may use CENVAT credit to offset service tax liabilities.
Units availing SSI exemptions may claim CENVAT credit for input services under Rule 2(l) of the CENVAT Credit Rules, 2004, and such credit may be used only to set off service tax liabilities, not central excise liabilities. Payments made under the reverse charge or partial charge mechanisms qualify as input services and are eligible for input service credit usable for service tax payments. (AI Summary)
Units availing SSI exemptions may claim CENVAT credit for input services under Rule 2(l) of the CENVAT Credit Rules, 2004, and such credit may be used only to set off service tax liabilities, not central excise liabilities. Payments made under the reverse charge or partial charge mechanisms qualify as input services and are eligible for input service credit usable for service tax payments. (AI Summary)