Ssi exemption
This query is : Resolved
05 November 2013
I am a 100% subsidiary of American company, am I eligible for SSI Exemption of 150 Lakhs. My turnover for previous year is 70 lakhs.
05 November 2013
Within my knowledge,being a subsidary of a foriegn company is not a barrier to claim SSI exemption since your previous yr turnover is within specified exemption limit.Please wait for others opinion
05 November 2013
But when I approached the excise officer to give a declaration as my turnover crossed 90 lakhs, he said it is not eligible for SSI Exemption and Duty is to be paid from the first rupee of clearance.
25 July 2025
Here's a clear explanation regarding your SSI exemption query:
---
### SSI Exemption and Foreign Subsidiaries
**Small Scale Industry (SSI) exemption** under Central Excise law allows manufacturers with turnover (typically up to ₹150 lakhs) to claim exemption from excise duty.
---
### Key points to consider:
1. **Turnover limit:**
The SSI exemption applies if your **aggregate turnover** in the previous financial year is below the prescribed limit (₹150 lakhs in your case).
2. **Subsidiary status:**
Being a **100% subsidiary of a foreign company** does **not automatically disqualify** you from SSI exemption. The exemption is primarily based on turnover, not ownership.
3. **Excise officer's view:**
If the officer is denying exemption because your turnover "crossed 90 lakhs," this may be due to one of the following:
* There might be specific conditions or notifications applicable.
* The turnover considered may be **aggregate turnover including related/associated units**.
* Misinterpretation or incorrect advice by the officer.
---
### Suggested action:
* **Check the latest Central Excise notifications** related to SSI exemption for your sector.
* Verify if your turnover includes sales from associated or related entities which may affect the limit.
* You can submit a **written representation** to the officer citing your turnover and parent company status.
* If necessary, seek **legal/consultancy advice** or approach the **Central Excise appellate authority**.
---
### Summary:
* Subsidiary status alone does **not** disqualify you from SSI exemption.
* Turnover exceeding prescribed limits disqualifies exemption.
* Verify actual turnover and related units before concluding.
---
If you want, I can help draft a letter or representation for the excise department. Would that help?
---
### SSI Exemption and Foreign Subsidiaries
**Small Scale Industry (SSI) exemption** under Central Excise law allows manufacturers with turnover (typically up to ₹150 lakhs) to claim exemption from excise duty.
---
### Key points to consider:
1. **Turnover limit:**
The SSI exemption applies if your **aggregate turnover** in the previous financial year is below the prescribed limit (₹150 lakhs in your case).
2. **Subsidiary status:**
Being a **100% subsidiary of a foreign company** does **not automatically disqualify** you from SSI exemption. The exemption is primarily based on turnover, not ownership.
3. **Excise officer's view:**
If the officer is denying exemption because your turnover "crossed 90 lakhs," this may be due to one of the following:
* There might be specific conditions or notifications applicable.
* The turnover considered may be **aggregate turnover including related/associated units**.
* Misinterpretation or incorrect advice by the officer.
---
### Suggested action:
* **Check the latest Central Excise notifications** related to SSI exemption for your sector.
* Verify if your turnover includes sales from associated or related entities which may affect the limit.
* You can submit a **written representation** to the officer citing your turnover and parent company status.
* If necessary, seek **legal/consultancy advice** or approach the **Central Excise appellate authority**.
---
### Summary:
* Subsidiary status alone does **not** disqualify you from SSI exemption.
* Turnover exceeding prescribed limits disqualifies exemption.
* Verify actual turnover and related units before concluding.
---
If you want, I can help draft a letter or representation for the excise department. Would that help?
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