Cenvat credit of service tax paid by SSI unit
This query is : Resolved
05 October 2009
An SSI manufacturing unit is working under the exemption upto 150 lacs.Thereafter, it'll start paying normal duty on clearance. The unit is also registered under Service Tax and paying service tax on GTA for transportation of goods as the unit is a partnership firm. It has made two quarterly payments of service tax while it is running under exemption. Now, can it take the Cenvat credit of Service Tax so paid thru GAR7? If yes, whether it'll be taken after crossing the exemption limit, or on the date of payment itself? Pls do reply soon.Thanks.
ANIL JANGID
(Expert)
05 October 2009
IF YOUR UNIT UNDER SSI EXEMPTION YOU CAN NOT TAKE CENVAT.
06 October 2009
Thanks Mr. Jangid for the reply.This means that so long the unit is availaing SSI exemption,no kind of credit is available including credit of service tax paid on GTA. And even after the unit starts paying duty, the credit for prior period (while unit was in exemption) is also not available, i.e., it has to be forgone in any case.Have i understood it correctly?
16 October 2009
Unit availing SSI exemption can not take credit of prior period.
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