Is registration necessary for Small Scale unit

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This query is : Resolved

sharad (Querist)

22 March 2011 as new 1% excise imposed on 130 items in this budget.
i want to know following
1 ) As i am Small scale manufacturar and my sales for last few years and this year is also below 1 crore. Then should i have to pay 1% excise or i can get ssi benefit of exemption upto 1.5 crore.
2) Is it compulsory for myself to get registered with or inform my status to excise office.

Excise officer says it is compulsory to get registration even your sales in this item is Rs. 1 lac .

please inform me about registration is compulsory or not. Thanks

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

22 March 2011 The Scheme of voluntary registration of Small Scale, Village and Cottage Industries with the State Directorate of Industries was introduced in 1960 and such registered industrial units were made eligible for different types of assistances by the Governmental Agencies. Initially a uniform norm for registration were not laid down with the result that some of the States had granted different registration numbers to different lines of manufacturing processes to the same unit thereby resulting in multiple registration.

Therefore to avoid such anomalies a uniform set of Application Forms for both Provisional as well as Permanent Registration were evolved out at the time of introduction of the revised procedure of registration of these sectors of industrial undertakings in 1975. With the passage of time, the Government of India, Ministry of Commerce and Industries further simplified the procedures by simplification of the forms for registration and also introduced the coded system to indicate the State, Districts and the unit's serial number so as to facilitate computerization of the whole system of SSI registration, in 1989.

hence Small Scale and ancillary units (i.e. undertaking with investment in plant and machinery of less than Rs. 10 million) should seek registration with the Director of Industries of the concerned State Government.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

22 March 2011 the registration scheme has no statutory basis. Units would normally get registered to avail some benefits, incentives or support given either by the Central or State Govt. The regime of incentives offered by the Centre generally contains the following:

- Credit prescription (Priority sector lending), differential rates of interest etc.
- Excise Exemption Scheme
- Exemption under Direct Tax Laws.
- Statutory support such as reservation and the Interest on Delayed Payments Act.

(It is to be noted that the Banking Laws, Excise Law and the Direct Taxes Law have incorporated the word SSI in their exemption notifications. Though in many cases they may define it differently. However, generally the registration certificate issued by the registering authority is seen as proof of being SSI).

States/UTs have their own package of facilities and incentives for small scale. They relate to development of industrial estates, tax subsidies, power tariff subsidies, capital investment subsidies and other support. Both the Centre and the State, whether under law or otherwise, target their incentives and support packages generally to units registered with them.

sharad

sharad (Querist)

22 March 2011 sorry i think i couldn't elaborate my concern properly.
i am asking for excise registration is compulsory even my ssi registered unit has sale of 85 lacs ?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

22 March 2011 yes....

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