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Clearance of 90 lakh. how should i proceed ?

RoHaN k (CA & CS) (308 Points)

06 June 2014

Hello ,

Please advise , Manufacturer crossed 1.2 Cr turnover , How should I proceed to declare same with Excise authority, If I declare am I eligible for SSI 1.5 CR Exemption? Is this declaration means permanant registration ?

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6 Replies

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 07 June 2014

SSI exemption limits 1.5 only crore and if you cross the Rs. 90 lacs sale then then you needs a self-declaration should be submitted in the Excise Dept. and if you cross the maximum exemption limit above Rs. 4 crore then you cannot availed the exemption benefit for next year.

And you should go to registration. If you having other observation or not got my things then forward the same.

RoHaN k (CA & CS) (308 Points)
Replied 07 June 2014

Thanks for the information.

After declaring the same , Do I have to opt for registration sepearately before crossing 1.5 Cr , ?

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 07 June 2014

Only one registration required for you and if you cross the exemption limit Rs. 4 crore then you will not require obtained a new registration number.

Only one registration number is sufficient for you. Hope you got this things if not plz forward the same.

RoHaN k (CA & CS) (308 Points)
Replied 07 June 2014

No sir I am still not clear ,

As you said after 4 Cr I have to opt for registration.

My question , whether I have to opt for registration after crossing 1.5Cr ? as I get eligible to pay tax after crossing of 1.5 Cr.?"

Please clarify

Harendra Kumar (Tax Advisor ) (1326 Points)
Replied 07 June 2014

In this regard you can adopt Two Option i.e.

First clearance have to pay excise duty and
Secondly you can take the exemption benefit 1.5 crore

In your queries that are if you cross the 1.5 crore then you have to pay Central Excise Duty in this regard and you can take the benefit of Cenvat Credit Rule, 2004 paid Central Excise Duty on purchase.