Service tax exemption and carry forward of input

Service tax is applicable only if an assessee has exceeded his threshold limit ( at present 10,00,000/-).

In the present case

(i) Exemption is availble upto 10,00,000/- only and even if he voluntarily registers himself;

(ii) Unless there is an output tax ( Payable), an assessee cannot claim any input and same rules of VAT are applicable in most of the cases.

(iii) N.A

Even though the assessee has taken voluntary registration, the exemption of 10 Lakhs would still apply.

And no cenvat credit shall be taken as there is no output tax. 

Dear Sirs,

Thanks for the prompt reply. Would appreciate if you could mention the relevant Setion/notification/circular realted to the said issue.

Regards,

Abhishek

i agree with mr.prateek agarwal.

I agree with the above comments.  Simple logic is there is no output tax - not possible to claim input tax credit.

Abhishek - Why dont u refer the service tax basics material...??

Actually this is very basic question.