SSI

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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)
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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)
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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.