Computer embriodery

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This query is : Resolved

Ruchi (Querist)

09 July 2013 A proprietorship X turnover is 40Lakhs, its into the business of computer embroidery, my doubts are:
1. Does the turnover of the proprietor makes it qualify as an SSI unit?
2. If it is an SSI unit does it have to register with Central Excise and get TPIN? or it just have to give declaration when it exceeds the prescribed limit of 90 Lakhs without registering with central excise.??

Madhukar N Hiregange

Madhukar N Hiregange (Expert)

10 July 2013 Embroidery on garments is a process and may not be considered as a manufactured product. It could be said to be textile processing if we were to consider the definition of textile.

However assuming that it was embroidery oin running lengths and liable then also only on reaching 90 L declaration.

Ruchi

Ruchi (Querist)

10 July 2013 Embroidery falls under chapter heading of 5810 of central Excise, the aforesaid company may fall under central excise and it may be an SSI.

1. However i would like to know the procedure to register SSI units with central excise?? can we do it online via ACES?

2. Will they be any effect if an SSI unit whose turnover doesnt exceed 90L but yet it got itself registered with Central excise??

Could you please clarify my doubts.

Arun Kumar Singh

Arun Kumar Singh (Expert)

11 July 2013 Your activity will amounts to manufacture and it is taxable. You will get the SSI exemption upto 1.5cr, intimation is required upto 90 lakhs. You can do the registration online via ACES upto the turnover 1.5cr and pay the duty after exemption limit.

Ruchi

Ruchi (Querist)

11 July 2013 Thanks Guys.

1. I would further like to know how to claim SSI Exemption, do we have to submit any application and if so how?

2. The said unit, receives order from clients, it does embroidery based on specifications and returns the material back to clients, so even in this case can a SSI claim an exemption??

Arun Kumar Singh

Arun Kumar Singh (Expert)

11 July 2013 SSI exemption will be count from the financial year. The return goods will not be count in the exemption limit.

Ruchi

Ruchi (Querist)

11 July 2013 As per SSI exemptions, units which manufacture under brand or trade name of others doesnt have an option to seek for exemption scheme.

so in this case the manufacturer returns the goods, so can he claim exemption scheme.

Arun Kumar Singh

Arun Kumar Singh (Expert)

11 July 2013 SSI exemption will not be available for manufacturing of goods bearing other brand name.

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