Exemption from central excise for manufacturing Indl. oils

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javed khan

accountant

22 Points Posted on 13 January 2010

I wish to start a manufacturing unit for manufacture of Industrial Oils, lubricants and Grease and Textile Auxillaries. I hope to cross sale of Rs.1.00 crore in a year. I want to know the exemption limits from excise and excise slabs for different sales. Is there enhanced exemption, if I register my unit as S.S.I. Unit? Is there any way, to opt out of excise also? Can someone reproduce those sactions, which you use to answer my above questions, so that I know that your answers are autheticated and have legal binding, so that I do not have any problem/trouble lateron. If I want to hire a consultant for day to day work related to excise and preparing and filing of excise returns, claims and refunds, representations, follow-ups, i.e., A TO Z work of excise, what will be his charges per year.

Replies (3)

Arun Kumar Singh

GST Advocate

13166 Points Posted on 15 January 2010

As per earlier instructions, while calculating turnover of Rs. 150 lakhs for exemption from registration, export turnover will be not considered. If clearance for home consumption are less than Rs. 150 lacks, it is not necessary to take registration and follow excise procedures. SSI units whose turnover is less than Rs. 4 crores are eligible for the concessions. If ssi unit does not avail cenvat on inputs, turnover upto Rs. 150 lachs is fully exepmt. If ssi unit avails cenvat on inputs, it has to pay normal duty on all clearances and no ssi exemption is available.

Jeevesh Mehta

Advocate- Corporate Commercial & Indire

686 Points Posted on 15 January 2010

Dear Javed,

it would be very difficult for any Consultant to tell u the yearly charges lke this. It all depends on the kind and volume of work to be done and lot morethings.

Regards

Jeevesh Mehta

Advocate- Excise, Customs, Service TAx , VAT Consultant