Can small scale service proivder claim cenvat credit??

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2015 I have 2 ques:

Point no 1: Can a small scale service provider claim cenvat credit before crossing the threshold limit of Rs: 10 lac.

Point no 2: Registration is mandatory as soon as turnover exceeds limit of Rs: 9 lac. Can one get registration at the beginning of his business, if not, why?

Rajesh Sharma

Rajesh Sharma (Expert)
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21 February 2015 Hi,

You can get the registration under the Service tax even at the beginning of the business and need not wait till crossing the turnover of 9 lac and start charging service tax from first invoice. Further, it you will also be eligible to claim Cenvat credit.

Answer to Question 1 is in negative, if you are claiming benefit of Small scale service provider than Cenvat credit will not be available.