Is Input services available for units under SSI Exemptions, Service Tax

[ravichandran maraiyan]

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?

Posts / Replies

[Pradeep Khatri]

Dear Ravichandran,

You can avail the CENVAT credit as per the provisions mentioned in the Rule 2 (l) of the CENVAT credit Rules, 2004 and it can be only used for setting off the service tax liabilities. This cannot be used for setting off the Central Excise Liabilities.

Regards,

Sameer Malhotra - Consultants

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Naveed S]

Sir,

service tax payments made under reverse charge mechanism/partial charge mechanism charge are eligible for taking input service credit and for utilization towards service tax payments.