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CENTRAL EXCISE SSI EXEMPTION:TRADING TURNOVER


EXCISE SSI EXEMPTION NOTIFICATION 8/2003 allows a manufacturer exemption from excise on goods cleared upto a turnover of 1.5 Crores in a financial year provided turover in previous year is less than 4.0 crores.

Can the manufacturing unit engage in trading activity in the same item, if yes, will the trading turnover be included in the exemption limit of 1.5 crores & the eligibility limit of 4.0 crores?

 

 
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Yes it will include in  the while calculating the SSI Status in the next year

 
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(Guest)

Originally posted by :Mohit Vats
" Yes it will include in  the while calculating the SSI Status in the next year "

Will the trading turnover be included or excluded in the exemption limit of 1.5 Crores?
 

Will it be included or excluded in 1.5 Crore turnover for current year.

 
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(Guest)

Originally posted by :Bharath Kedia
" EXCISE SSI EXEMPTION NOTIFICATION 8/2003 allows a manufacturer exemption from excise on goods cleared upto a turnover of 1.5 Crores in a financial year provided turover in previous year is less than 4.0 crores.
Can the manufacturing unit engage in trading activity in the same item, if yes, will the trading turnover be included in the exemption limit of 1.5 crores & the eligibility limit of 4.0 crores?
 
"


 

 
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hi friends

Excise act  is not paid on trading activity . hense the que. of  excise duty on trading activity is meaning less .


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Advocate- Taxation & Corporate

Trading turnover is not required to be included in the calculation of limit of 1.5 crore or 4 crore.


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i need the procedure JOB WORK doing the a EXcise unit to Non Excise Unit  and Non Excise Unit to Excise Unit

 
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Advocate- Taxation & Corporate

Firstly you need to examine if the job work amounts to manufacture or not.

If the principal manufacturer is a non excisable unit, there is no exemption to the job worker. If the process amounts to manufacturer, the job worker needs to pay Central Excise duty and if the process does not amount to manufacture, service tax is required to be paid under business auxiliary service.

If the principal manufacturer is an excisable unit, the unit may follow either the notification 214/86 or under Cenvat Credit Rules; and in that case both the excise duty and service tax is exempted.

 

 
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Dear Members

Trading Unit (PVT LTD) Company has to be takeover the Propership Firm (Manufacturing Unit) if take over what is the procedure as per Central Excise Department  / Sales Tax Department.

 

 

 
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Advocate- Taxation & Corporate

A simple agreement through which the acquiring company will be buying all the assets and liabilties of the company is sufficient for this acquisition. After this agreement, the registration certificate of the manufacturing unit can be surrendered and new regsitration be taken.


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