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applicability of central Excise duty

joji jose (audit manager) (242 Points)

18 September 2010

Dear sir,

one of our client is running a SSI unit of manufacturing castic soda etc. During this year his turnover may exceed 1.5 crores , whether he will be liable to take registration under central excise act and pay taxes.

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11 Replies

Harsha (Chartered Accountant CS (Final)) (227 Points)
Replied 20 September 2010

First please check your product 'Castic soda' is a Excisable product? You can check this in First schedule of the CETA 1985. If yes, then you need to register with the Central Excise department after crossing turnover of 90 lakhs. Once you were crossed 1.5 crores, you need to charge Excise duty for the clearances.

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guruvaiah.G (PROPRIETOR) (30 Points)
Replied 13 August 2011

we are a gas systems manf as on date our gross turnover is nearly 1.47 lakhs is it applicable for central ex registration'

CA Saiyum khan (Practicing CA) (685 Points)
Replied 15 August 2011

Originally posted by : guruvaiah.G
	we are a gas systems manf as on date our gross turnover is nearly 1.47 lakhs is it applicable for central ex registration'

GAs system is excisable item, hence central exise registration is required when during the year Gross Turnove exceeds Rs.90 lacs.

Ritu Sedwal (Chartered Accountant) (407 Points)
Replied 16 August 2011

Since u r a SSI unit u need to give declarartion if the AGGREGATE VALUE of clearances exceeds 90Lakhs during the PRECEEDING FINANCIAL YEAR.

If u cross 150lakhs threshhold limit in the preceeding F.Y then u have to get urself registered.

So in ur case i assume ur client didn't cross the 150lakhs limit so registration is required but if their clearances is more than 90 lakhs then declaration is required to be given.

Current Year clearances will be considered next year.

Ritu

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CA Unnikrishnan Nair N (Chartered Accountant) (2083 Points)
Replied 17 August 2011

Ritu is correct. Registration is required only upon crossing Rs.150L. Simple form declaration upon crossing Rs.90L.

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Megha Vora (Accountant) (26 Points)
Replied 12 December 2011

And suppose, a manufacturer has exceeded a turnover of Rs. 90 lacs and is likely to exceed a turnover of Rs. 1 crore but would not achieve Rs. 1.5 crore, then what will be the situation of applicability of central excise? Kindly reply.

CA Prabhat Gupta (Manager (Indirect Taxes)) (821 Points)
Replied 14 December 2011

Only file the prescribed declaration. Requirement of registration & liability to pay duty will arise only on crossing the threshold limit of Rs.150 lacs. Once you cross this threshold limit for the first time you will be required take registration and pay duty. Thereafter you may avail the benefits of the SSI exemption in coming years provided the conditions specified in Exemption notification are satisfied.

1 Like

Megha Vora (Accountant) (26 Points)
Replied 26 January 2012

One of the companies where I worked was registered with SSI as a manufacturer. The total turnover of that company was Rs. 8 crore. Out of which, the manufacturing of that company was less than 50 lacs. Rest all was just a trading. They were registered with Central Excise also. I am not able to understand how do they come under Central Excise? Kindly explain.

Megha Vora (Accountant) (26 Points)
Replied 26 January 2012

The query I have raised for the company was importing the items from China and resell it to local customers. Also they were used to pass on the credit of C.V.D. to customers.

Chandan (Article Assitant) (21 Points)
Replied 17 March 2012

Please tell me My company have manufacturing of Readymade Garments. During the year 2011-12 my company turnover exceeds Rs. 3.48 Crore than My company is leviied excise rate 10% on the MRP. My question is that is there is applicability of excise duty on the first bill in the year 2012-13 or after exceeding limit we levied the excise duty? Please give me answer as soon.