Excise Duty on Hosiery Products

Hello,

We are a garment manufacturer and wholesaler located in Ludhiana and we are bit confused about the newly introduced excise duty. It would be great help if you could answer our question.

1.  We are bit confused about the rsp turnover limit of 8.9cr and 4 cr after abatement. Wedo not mention RSP on our products. So will the price at which products are sold considered as rsp? Supposing we have a total revenue of about 2.5cr based on wholesale price, how will be excise duty calculated? Will it be :

a) 45% of 2.5 cr < 1.5 cr abatement, so no excise.

or

b) 1.5 abated frm 2.5 crores which leaves us 1cr which will be exciseable?

or something else?

2. Is there any excise on woolen headwears? (woolen caps)

Replies (5)

 

First 1.50Cr you can take SSI exemption limit you could not take input credit in SSI exemption limit if you took input credit in 1.50Cr turnover than SSI Exemption will not avail and you have to pay tax from the beginning…

45% abatement is on MRP price of product…

So according to you it will be a) 45% of 2.5 cr < 1.5 cr abatement, so no excise.?

 

excise levied on garments from march that means for current f.y. 11-12 you can take SSI exemption of 1.50Cr. and than after crossing 1.5Cr you have to pay ED after abatement amount..

I know that, but is this exemption on pre abated turnover or post abated?

its on post abated turnover you can take abatment of now manufcaturing product...

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