Ssi exemption

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Hello Everyone.

Under SSI Exemption a manufacture is exempt from payment of Excise duty.

Now,

There is a manufacturer Mr. A. He produces 1 type of product and procures other type of product via job work. Since turnover of product produced by the manufacturer himself does not exceed rs. 150 lacs, he is eligible for SSI exemption. For calculation of turnover of Rs. 400 lacs, job work products are excluded.

So i need to know if the job-worker is required to charge excise duty on the goods produced by him (Which are excluded from calculation of 400 lacs) since the manufacturer is exempt from payment of excise duty vide SSI exemption..

Replies (1)

Jobwork value will not be count for SSI exemption. Central excise and service tax will not be applicable on you if principal manufacture pay the duty on final product.


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