Excise Duty Exemption For SSI Units

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M. Murugappan (Querist)
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01 June 2011 Dear Sir,

Your article was really enlightening on excise duty on branded readymade garments, but there is still a slight confusion with regard to SSI Units exemption. We are a small branded garments manufacturers of readymade garments and are registered as SSI unit, we started our branded retail business only from 1st.March.’2011 and in the last financial year till 31st.March.’2011 we had a MRP sales turnover of Rs.1.22 crores but in this financial year from 1st.April.’2011 to 31st.May.’2012 we have already recorded an total MRP Sales turnover of Rs.1.44 Crores, do we need to get our unit registered in Excise and start paying Excise duty @ 10% on 45% of MRP Sales the moment our MRP Sales Turnover croses Rs.1.50 Crores, which can happen anytime this month, or shall we wait for our MRP Sales Turnover to touch Rs.3.34 Crores{i.e., 45% Of Rs.3.34 Crores is Rs.1.50 Crores}. Sir please advise us on this very confusing SSI exemption limit and guide us when to get the excise registration done in this financial year 2011-12, when our MRP Sales Turnover crosses Rs.1.50 Crores or Rs.3.34 Crores, in the current financial year kindly guide us in this regard, your reply will be highly valued and will be be helpful to us.

Thanks & B/Regards

M. Murugappan.

U S Sharma

U S Sharma (Expert)
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02 June 2011 when you are sure about your taxability in current year, its always wise to take registration now and start filing return, excise registration is needed @ 90 lacs turnover, abatement is another issue which is to be claimed in threshold limit but not in registration issue.

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