Calculation of threshold exemption limit in excise, if tradi

 

Calculation of threshold exemption limit in excise, if trading turnover is also included..? and vat , sales tax forms part of the amount –turnover..?

If a manufacturing concern , SSI, has a turnover of manufacturing goods say abt Rs. 1.42 crores, and a trading goods turnover of Rs. 20 lacs , still it falls under taxable category since the total turnover exceeds, Rs. 1.5 crores, and what components, like sales tax vat is included in calculation of turnover for calculating exemption threshold.. in case of a unit manufacturing wooden cable drums..  ??

Replies (2)

IF ANNUAL TURNOVER IS LESS THAN RS.4 CRORES IN PREVIOUS YEAR, THECOMPANY IS ELIGIBLE FOR SSI EXEMPTION UNDER NOTIFICATION NO . 8 /2003.

SINCE THE TURNOVER OF THE COMPANY IS LESS TNAN Rs.4 CRORES. IT IS NOT LIABLE TO PAY EXCISE DUTY UP TO Rs.150 LACS OF DUTY AMOUNT.

VAT AND SALES TAX PAID WILL NOT FORM PART OF TOTAL TURNOVER FOR THRESHOLD LIMIT.

What is to be counted is value under Section 4/4A under Central Excise Act, and exclude other things which are excludable there. Taxes are to be excluded.

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