Ssi doubts plzzzz help!!!

613 views 8 replies

shekhar

student

257 Points Joined May 2012

Hi Guyzz,,,HAPPY DIWALI TO ALL :)

I have some doubts in SSI topic please clear my doubts.

As per circular 57/88 input removed AS SUCH will not be included in 400/150 lakh limits.But what about CAPITAL good removed AS SUCH?? Same treatment will also aplly for cap goods removed as such??????

2. 150 lakh apply to taxable turnover that is if total turnover is 250 lakh then 250-150=100 lakh will be taxable. Tax will be calculated on 100 lakh but i came across a solution in a book which is as under.

Turnover(inc E.D) =19316832

Less- SSI Exemp=15000000

Cum duty price on which no exemp available=4316832

Less- E.D(4316832*12.36/112.36)= 474867

Assessable value of unxexempt portion =3841965

But as per my view it should be like this

Turnover(inc E.D) =19316832

Less-E.D (19316832*12,36/112.36)=2124920

Turnover(excluding E.D) =17191912

Less- SSI Exemp =15000000

Taxable Turnover =2191912

E.D 12.36% =270920

What is the right solution????

Replies (8)

ankita agrawal

article student

133 Points Joined June 2014

Turnovr including E.D means on first 150 lakh there is no duty and the balance is inclusive of duty..as per ur calculatn if ED is calculated on total turnovr then 150 lakh pr b duty ka elemnt aa jayega

ankita agrawal

article student

133 Points Joined June 2014

I didnt get ur 1st doubt

shekhar

student

257 Points Joined May 2012

Hi ankita didn't get ur answer to 2nd question? Will u pls elaborate it??? My doubt is 150 lakh cum duty turnover me se less nahi hona chahiye coz 150 lakh less karne ke baad hi to taxable turnover aaygi....

Prakhar Bansal

Chartered Accountant

28 Points Joined September 2014

U r a ssi right? So when u say that ur given turnover is inclusive of E D it means that it includes ed element of sales over and above rs 150 lac ony and no ed was charged on the first 150 lacs. Eg If my turnover is rs 250 lac and ed rate is say 5 % and I am an ssi. (Cess ignored for convinoence in calculation) Then My turnover inclusive of ed will be 150+ 100+ 1005%=255 So while reverse calculating the ed amount we will first deduct the 150 lac and then apply ed formula as under Turnover(inc E.D) = 255 lac Less- SSI Exemp=150 lac Cum duty price on which no exemp available= 105 lac Less- E.D(105*5/105)= 5 lac Assessable value of unxexempt portion = 100 lac

shekhar

student

257 Points Joined May 2012

Thanks prakhar ....now i got it... can u please clear my 1st doubt also ...that is if cap goods removed as such then these are also exlcluded from 150/400lakhs limts like input removed as such ???

Praveen N Talreja

Articled Assistant

42 Points Joined June 2013

Capital goods removed as such will be outside the purview of 150/400 lacs limit. And at time of removal of capital goods, you have to issue invoice under rule 11 which you don't issue for your normal clearances.