Excise registration

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.

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

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

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

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

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.

For  Trunover of Rs. 1.5 Cr

will it be taken gross or Net of Taxes?