ssi unit

SSI unit has turnover exceeding rs. 90 lacs it files quarterly returns

for FY 08-09 it has imported and purchased locally capital goods and accordingly has posted same in cenvat register can it utilise this credit in FY 09-10 in case the turnover crosses limit of Rs. 150 lacs and it starts charging excise duty

can it utilise 100% credit in FY 09-10 of capital goods

it has purchased inputs and input services in FY 08-09 can it avail this in FY 08-09 and then utilise it in FY 09-10

is there any provision where if ssi unit exports

please clarify whether credit is to be availed first and then utilised availment means posting in cenvat register and utilisation is actual credit being utilised for payment of duty is this correct

 

 

 

Replies (1)

Yes. It can utilise 100% in 09-10. In fact it should take 50% credit in the first year (remain unutilised) and 50% next year, it can utilise all 100% in that year.

Till the time the unit is not paying duty and availing exemption, it cannot take credit on input and input services.

The export procedure for SSI is same as for any other unit (ARE-1) if the unit wants to avail any excise benefit for exports. For calculation of export turnover, in calculating the limit of 150 lakhs, supply made on form H or direct export done without ARE-1 is admissible. 

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