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

[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

[RadheyShyam 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.

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.