Service tax credit for SSI Unit

[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

AI Summary

Eligibility for Service Tax Credit Under SSI Exemption: No CENVAT Credit Until Rs.1.5 Crore Threshold Exceeded, Conflicting Opinions Persist. An individual inquired about the eligibility for service tax credit while operating under the Small Scale Industry (SSI) exemption. One response clarified that no CENVAT credit is available under the value-based SSI exemption until the Rs.1.5 crore threshold is exceeded. After crossing this limit, service tax credit on services received post-threshold can be availed. Another response highlighted differing opinions, mentioning a recent tribunal decision allowing credit during SSI exemption, though the department might still issue a show cause notice.