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Excise registration

Gaurav (Manager) (50 Points)

13 March 2012

I am about to start a Manufacturing Comapny in Haryana Estate. The type of business is to manufacture Steel fabricated items.

I want to know about the taxes applicable on the finished product & the minimum turnover required for registration.

Whether VAT will be applicable on Steel Fabrication or not?

Please provide the information.

Thanks

Gaurav Kapoor

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7 Replies

C.V.R.SARMA (SERVICE) (90 Points)
Replied 13 March 2012

Notification No.8/2003-CE dated 01.03.2003 as amended, provides exemption from payment of duty to the first clearances of Rs 1.50 crores. Accordingly, you need not take registration till your excisable turnover reaches Rs 1.5 crores. However, you are supposed to file a declaraiton as and when your turnover reaches Rs 90 lakh. As a precautionary measure, you may apply for registration once you reaches Rs 1.4o crores.

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Gaurav (Manager) (50 Points)
Replied 13 March 2012

Dear Mr. Sarma

Thanks for your kind reply.

Please advise further that what are the turnover limit for Sales Tax limits & also do I fall under VAT also.

Regards

Gaurav Kapoor

Rajesh (student) (193 Points)
Replied 13 March 2012

Hai,

Please Note 1.5 Crores Exemption only for SSI Units.

If you are not SSI in Units . Your threshold limit is 1 Crore

Till the time you touch 1 crore you should not take cenvat credit

1 Like

Gaurav (Manager) (50 Points)
Replied 13 March 2012

May you please elaborate on Cenvat Credit? I would be extremely grateful

Rajesh (student) (193 Points)
Replied 15 March 2012

CENVAT (Central Value Added Tax )Credit Meens, Input tax of
purchase of Raw Materials, Packing Material, Fixed Assets
and Consumables. This Input tax credit we can setoff the
tax payble which we have to pay to the government

C.V.R.SARMA (SERVICE) (90 Points)
Replied 15 March 2012

This is with regard to the reply posted by Mr Rajesh. Under Central Excise, only one SSI exemption limit i.e. Rs 1.5 crores. This exemption is applicable for all the units whether they are registered as SSI or other Units with the State Government. For availing this exemption of Rs 1.5 crores, only restriction is that, last financial turnover of excisable goods should be within Rs 4 Crores.

As regards to Sales TAx exemptions, somebody should help on this as I am not conversant with commercial tax laws.