Ssi notification

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CA Priyanka Goyal (Querist)
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29 December 2011 our company has two factory, both are registered in central excise with reg no 001 & 002 , manufacturing different products. my problem is that- for SSI exemption while calculating the limit 0f 400lakhs in PFY the turnover of both the factory will be aggregated or not?

Please reply.

U S Sharma

U S Sharma (Expert)
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29 December 2011 ssi notifcation no 8/2003 specifies total clubbed for all factories of one manufacturer. so aggregate of all factories is applicable

CA Priyanka Goyal

CA Priyanka Goyal (Querist)
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29 December 2011 Thank you sir,
Sir, further i want to confirm that the factor that the two units are producing different products is irrelevent for SSI exemption eligibility.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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29 December 2011 Goods manufactured by an SSI unit with brand name of others are not eligible for SSI concession, unless goods are manufactured in a rural area. However, SSI exemption will be available to packing material even if it bears brand name of other person.

If two SSI units are genuinely independent, they are eligible for SSI exemption, even if some or even most partners/directors are common. Financial control, flow back of profits and unity of interest are the major tests to determine whether turnover of two units is required to be clubbed.

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CA Priyanka Goyal

CA Priyanka Goyal (Querist)
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29 December 2011 Sir here the two factory are under same company. having suffix in there reg no. 001 & 002. so i want to confirm, for calculating the limit of 400 lakhs whether the turnover will be clubbed for both the factory or not. the two factories are producing different products.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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29 December 2011 Turnover of all units belonging to a manufacturer will be clubbed for calculating SSI exemption limit.

for more information link is:

https://dateyvs.com/cenex09.htm

Radhey Choudhary

Radhey Choudhary (Expert)
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29 December 2011 two units producing different products is irrelevent for calculating SSI limit

All type of excisable sale clubbed for calculating SSI Limit including scrap sale.

CA Priyanka Goyal

CA Priyanka Goyal (Querist)
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29 December 2011 Thanks to you all for valuable answers.

Thank you

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