diff --git a/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java b/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java
index b97a7d77ca1..edcfa67e391 100755
--- a/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java
+++ b/server/src/com/cloud/storage/snapshot/SnapshotManagerImpl.java
@@ -370,24 +370,32 @@ public class SnapshotManagerImpl implements SnapshotManager, SnapshotService, Ma
     @DB
     @ActionEvent(eventType = EventTypes.EVENT_SNAPSHOT_CREATE, eventDescription = "creating snapshot", async = true)
     public SnapshotVO createSnapshot(Long volumeId, Long policyId, Long snapshotId, Account snapshotOwner) {
-        VolumeVO volume = _volsDao.findById(volumeId);   
+        VolumeVO volume = _volsDao.findById(volumeId);
         if (volume == null) {
-        	throw new InvalidParameterValueException("No such volume exist");
+            _resourceLimitMgr.decrementResourceCount(snapshotOwner.getId(), ResourceType.snapshot);
+            throw new InvalidParameterValueException("No such volume exist");
         }
         
         if (volume.getState() != Volume.State.Ready) {
-        	throw new InvalidParameterValueException("Volume is not in ready state");
+            _resourceLimitMgr.decrementResourceCount(snapshotOwner.getId(), ResourceType.snapshot);
+            throw new InvalidParameterValueException("Volume is not in ready state");
         }
-        
+
         SnapshotVO snapshot = null;
-     
         boolean backedUp = false;
         UserVmVO uservm = null;
         // does the caller have the authority to act on this volume
-        _accountMgr.checkAccess(UserContext.current().getCaller(), null, true, volume);
+        try {
+            _accountMgr.checkAccess(UserContext.current().getCaller(), null, true, volume);
+        } catch ( PermissionDeniedException pe) {
+            // decrement the resource count
+            _resourceLimitMgr.decrementResourceCount(snapshotOwner.getId(), ResourceType.snapshot);
+            s_logger.debug("Decrementing the resource count for account: " + snapshotOwner.getAccountName() + ", access failed");
+            throw pe;
+        }
         
         try {
-    
+
             Long poolId = volume.getPoolId();
             if (poolId == null) {
                 throw new CloudRuntimeException("You cannot take a snapshot of a volume until it has been attached to an instance");
@@ -442,7 +450,6 @@ public class SnapshotManagerImpl implements SnapshotManager, SnapshotService, Ma
             		throw new CloudRuntimeException("Creating snapshot failed due to volume:" + volumeId + " is being used, try it later ");
             	}
             }*/
-
             snapshot = createSnapshotOnPrimary(volume, policyId, snapshotId);
             if (snapshot != null) {
                 if (snapshot.getStatus() == Snapshot.Status.CreatedOnPrimary) {
@@ -475,18 +482,23 @@ public class SnapshotManagerImpl implements SnapshotManager, SnapshotService, Ma
                     _usageEventDao.persist(usageEvent);
                 }
                 if( !backedUp ) {
-
                     snapshot.setStatus(Status.Error);
                     _snapshotDao.update(snapshot.getId(), snapshot);
+                    //Decrement Resource Count
+                    _resourceLimitMgr.decrementResourceCount(snapshotOwner.getId(), ResourceType.snapshot);
+                    s_logger.debug("Decrementing the snapshot resource count for account: " + snapshotOwner.getAccountName() + " as backup failed");
                 } else {
-                    _resourceLimitMgr.incrementResourceCount(snapshotOwner.getId(), ResourceType.snapshot);
+                    s_logger.debug("Backup of the snapshot for account id :" + snapshotOwner.getAccountName() + ", successfully completed");
                 }
             } else {
-            	snapshot = _snapshotDao.findById(snapshotId);
-            	if (snapshot != null) {
-            		snapshot.setStatus(Status.Error);
-            		_snapshotDao.update(snapshotId, snapshot);
-            	}
+                //Decrement Resource Count
+                _resourceLimitMgr.decrementResourceCount(snapshotOwner.getId(), ResourceType.snapshot);
+                s_logger.debug("Decrementing the snapshot resource count  for account: " + snapshotOwner.getAccountName() + " as snapshot creation failed");
+                snapshot = _snapshotDao.findById(snapshotId);
+                if(snapshot != null) {
+                    snapshot.setStatus(Status.Error);
+                    _snapshotDao.update(snapshotId, snapshot);
+                }
             }
 
             /*
@@ -497,7 +509,6 @@ public class SnapshotManagerImpl implements SnapshotManager, SnapshotService, Ma
             }*/
 
         }
-
         return snapshot;
     }
 
@@ -1312,15 +1323,21 @@ public class SnapshotManagerImpl implements SnapshotManager, SnapshotService, Ma
         Type snapshotType = getSnapshotType(policyId);
         Account owner = _accountMgr.getAccount(volume.getAccountId());
         try{
-        	_resourceLimitMgr.checkResourceLimit(owner, ResourceType.snapshot);
+            //synchronize the resource count
+            synchronized (this) {
+            	_resourceLimitMgr.checkResourceLimit(owner, ResourceType.snapshot);
+            	//Increment the resourceCount  
+            	_resourceLimitMgr.incrementResourceCount(owner.getId(), ResourceType.snapshot);
+            	s_logger.debug("Incrementing the snapshot resource count for account : " + owner.getAccountName());
+            }
         } catch (ResourceAllocationException e){
-        	if (snapshotType != Type.MANUAL){
-        		String msg = "Snapshot resource limit exceeded for account id : " + owner.getId() + ". Failed to create recurring snapshots";
-        		s_logger.warn(msg);
-        		_alertMgr.sendAlert(AlertManager.ALERT_TYPE_UPDATE_RESOURCE_COUNT, 0L, 0L, msg, 
-        				"Snapshot resource limit exceeded for account id : " + owner.getId() + ". Failed to create recurring snapshots; please use updateResourceLimit to increase the limit");
-        	}
-        	throw e;
+            if (snapshotType != Type.MANUAL){
+                String msg = "Snapshot resource limit exceeded for account id : " + owner.getId() + ". Failed to create recurring snapshots";
+                s_logger.warn(msg);
+                _alertMgr.sendAlert(AlertManager.ALERT_TYPE_UPDATE_RESOURCE_COUNT, 0L, 0L, msg, 
+                "Snapshot resource limit exceeded for account id : " + owner.getId() + ". Failed to create recurring snapshots; please use updateResourceLimit to increase the limit");
+            }
+            throw e;
         }
 
         // Determine the name for this snapshot
@@ -1335,14 +1352,18 @@ public class SnapshotManagerImpl implements SnapshotManager, SnapshotService, Ma
         String snapshotName = vmDisplayName + "_" + volume.getName() + "_" + timeString;
 
         // Create the Snapshot object and save it so we can return it to the
-        // user        
+        // user
         HypervisorType hypervisorType = this._volsDao.getHypervisorType(volumeId);
         SnapshotVO snapshotVO = new SnapshotVO(volume.getDataCenterId(), volume.getAccountId(), volume.getDomainId(), volume.getId(), volume.getDiskOfferingId(), null, snapshotName,
                 (short) snapshotType.ordinal(), snapshotType.name(), volume.getSize(), hypervisorType);
         SnapshotVO snapshot = _snapshotDao.persist(snapshotVO);
         if (snapshot == null) {
+            //Decrement the resource count
+            _resourceLimitMgr.decrementResourceCount(owner.getId(), ResourceType.snapshot);
+            s_logger.debug("Decrementing the snapshot resource count for account: " + owner.getAccountName() + " as snapshot creation failed for volume");
             throw new CloudRuntimeException("Failed to create snapshot for volume: "+volumeId);
         }
+
         return snapshot;
     }