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SSI Exemption

CA KARTHIK (CHARTERED ACCOUNTANT) (189 Points)

24 July 2009

Excise duty is exempted for SSIs till 150 Lakhs ans normal rate of duty over and above it if the dutiable turnover exceeds 400 Lakhs during the preceeding year...

The SSI needs to intimate to the depatment about the turnover if the turnover reached 90 Lakhs and above.

My question here is ....is the 90 Lakhs on the whole turnover inclusive or exempted and non exempted goods or only dutiable turnover.

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7 Replies

(Guest)

WEll KArthiik,

I too had a similar doubt..but my logic is that the rules which r applicable while computing rs.150 lakhs clearnces (ie exclusions & inclusions if any, )should also be applicable for computing 920 lakhsturnover.But then exclusions for computing 150 & 400 lakhs limit differs...so, this logic is not 100% right.

Wait for others view as well.

If u get the answer pls reply to me as well.

Regards,

Lucky

BABU (Finance manager) (24 Points)
Replied 24 July 2009

Computing 90 lakhs or 150 lakhs turnover of SSI is excluding duty exmpted goods turover

Arun Kumar Singh (GST Advocate) (15188 Points)
Replied 25 July 2009

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 Lakhs is fully exempt. If SSI unit avails Cenvat on inputs, it has to pay normal duty on all clearances and no SSI exemption is available. You should intimate to the department if your turnover is exceed except exempted item Rs. 90 Lacks.

Indian Taxation (Business Head) (109 Points)
Replied 28 July 2009

Central Excise Exemption for Small Scale Sector (SSI unit)

It is the choice of the Small Scale Sector (SSI unit) which type of exemption it will avail and that option must be informed to the Department:

Option I:

Avail full exemption upto 1.50 Crores and pay normal duty thereafter. Such units can avail Cenvat credit on inputs after reaching turnover 1.50 Crores in that particular financial year.

Option II:

Small Scale Sector (SSI unit) can also pay duty on 100% despatch and avail full Cenvat Credit on inputs.

For more details visit www.inodetechnologies.com

CA.Aakhilesh (C.A. ) (403 Points)
Replied 30 July 2009

dear sir...............for ssi the aggregate vale of clearance of all excisable goods should not exceed the limit of 400 lacs in preceeding year..............in 400 lacs exempted goods and nil rated goods r included but non excisable goods are not included...........in the calculation of 150 lacs we included exempted goods and as well as nil rated goods so for 90 lacs we included nil rated and exempted goods.