SSI

This query is : Resolved

Guest

Guest (Querist)

26 March 2009 A unit is not considered as a SSI , if the T/o limit crosses 400 lakhs in the preceding year.
after this criteria is full filled, we can decide if a unit can avail exemption from excise upto Rs. 150 lakh value clearance.

My question is
Q 1. If NEWLY ESTABLISHED UNIT in FIRST YEAR OF OPERATION crosses Rs.400 lakhs can it be a SSI?
Q 2 .If yes can the exemption notification no.8 be given to such a unit?

CA.Hanumantha Reddy

CA.Hanumantha Reddy (Expert)
Follow

26 March 2009 No, the limit is applicable based on the value clearance and not based on the newly established entity. Hence, once the limit specified in the Notification no. 08/2003 cross Rs 400 lakhs, the assessee lost the SSI benefit.

Pravin Nemad-CWA

Pravin Nemad-CWA (Expert)
Follow

26 March 2009 As u mention other condition applicable in Notification 8 for SSI is fulfilled,then we need to check only turnover criterai, but if u check the provision carefully, then SSI unit have a exemption from registration as well as duty upto turnover of 1.5 cr. so idirectly u can enjoy ssi exemption at least for first year upto turnover of 1.5 crore & start paying duty after cross this limit. but next year u need to check the turnover of this year & if it is cross 4 crore then u are not eligable for ssi exemption in next year.