Ssi exemption

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Prateek Darda (Querist)
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12 March 2013 If suppose in last preceding year my turnover my turover is 6 crore then I have to pay excise duty on 2 crore or not by availing the benefit of 4 cr????

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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12 March 2013 The SSI exemption will be available or not is decided on the basis of Preceding Financial year's turnover

if the Assessee's turnover in the PFY is Less than 400 Lacs (4 Crores) then the Assessee is eligible to claim the SSI exemption
and exemption Amount is Rs.150 Lacs (1.5 Cr)

but if the Assessee's turnover in the PFY is more than 400 Lacs then the Assessee is not eligible for SSI exemption

Also if it is the first year of Assessee then they are elgible for the SSI exemption.

Therefore in your case if it is first year
you can claim exemption of Rs.150 Lacs

i.e. 600-150 = 450 excisable

but if it is not the 1st year then you cannot claim SSI exemption in the next year and for the Current year

you have to calculate the pfy turnover for claiming exemption

but exemption will be limited to Rs.150 Lacs

Prateek Darda

Prateek Darda (Querist)
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13 March 2013 my question is if my turnover in last two year i.e in 10-11 is 3 cr and in 11-12 is 4.5 cr then whether I have to pay excise duty on 0.5 cr for 11-12

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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13 March 2013 No for the year 11-12 you have to pay excise duty on 300 Lacs (450-150)

Since you can only get exemption upto Rs.150 Lacs after that exemption you have to pay excise duty

Clearly Saying exemption amount is not Rs.400 Lacs but it is Rs.150 Lacs

the amount Rs.400 Lacs is considered for applicability of SSI to the co.

if a co. has turnover of less than 400 Lacs
in the preceding FY
then the co will going to get the exemption
of Rs.150 Lacs in the current FY

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