Whether service provider has the option of not availing the exemption under this notification?

11 - Small Service Providers - Value Based Exemption upto 10 lakhs

Yes. Service provider has the option of not availing the exemption under this notification and choose to pay the service tax on the taxable services. Also this option can be exercised at any time during the financial year. However once such option exercised by the service provider during the year, then such option can not withdraw during the remaining part of the same financial year.

Once service provider choose not to opt exemption, he can start taking Cenvat credit. As per notification no. 33 /2012 dated 20-6-2012, w.e.f. 1-7-2012, the provider of taxable service shall avail the CENVAT credit only on such inputs or input services received, on or after the date on which the service provider starts paying service tax, and used for the provision of taxable services for which service tax is payable.

Dated: 1-4-2015