TaxTMI 
TaxTMI 
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
Service tax credit for SSI Unit
13 Oct 2011 
2 Replies 
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Service tax credit during SSI exemption may be denied until threshold is crossed, despite a conflicting tribunal view.
Entitlement to service tax credit while availing the SSI exemption is contested. The stated operational position is that an assessee availing the value based SSI exemption cannot claim cenvat credit during the exemption period; upon crossing the turnover threshold, credit is available only for services received on or after the date of crossing. A tribunal has held there is no bar to input service credit during exemption, but the department may issue show cause notices challenging such claims. (AI Summary)
Entitlement to service tax credit while availing the SSI exemption is contested. The stated operational position is that an assessee availing the value based SSI exemption cannot claim cenvat credit during the exemption period; upon crossing the turnover threshold, credit is available only for services received on or after the date of crossing. A tribunal has held there is no bar to input service credit during exemption, but the department may issue show cause notices challenging such claims. (AI Summary)