Registration under Central Excise

This query is : Resolved

shomenathpyne (Querist)
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12 October 2009 12.10.2009

To All Members

My client is a manufacturer of leather bag and present turnover is 98 lacs (95 lacs export sales and 3 lacs local sales) and it is an SSI Unit.
1)What is the limit amount to get registration under Central Excise in case of an SSI Unit?
2)Is the "Labour Charges Received" include in the turnover of Mfg.sales at the time to judge the limit for registration?
Example: Mfg export sales 1.45Crore+ Local Sales 4 lacs+ Labour Charge Recd Rs.10 Lacs=Total Rs 1.59Crore. Then will this SSI unit company will get registration under the C.Excise Act.

Shome Nath Pyne.

CA Akshat

CA Akshat (Expert)
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12 October 2009 SSI units have to register when the excisable turnover exceeds 90 laks.i.e. exports should not be considered in calculation of 90 lakhs.

If the labour charged is been added in bill of the item which is manufactured then it should be included but if the bill is made seperate and SERVICE TAX is considered then it should not be added in mfg sales at thte time to judge the limitation.

in ur example if the labour charged bills are made seperately and section 64 of service tax act been concidered then it should not be added in it. but any how it need not required to take registration number which is ECC as the turnover excludes the export sale.

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