12 May 2009
Dear Sir, I will thankful yur goodself for replying following my queries (1) What is Excise Return dates for Small Scale Indusries. (2) It is mandatory toinform Excise dept. for cancelled Invoice. If yes with Cancelled Copies? and reason for cancellation is required.
12 May 2009
Procedural concessions to SSI - Following are some procedural concessions to SSI.
quarterly return - The SSI unit availing SSI concession need not submit monthly ER-1 return. They have to submit a quarterly ER-1 return, by 20th of following month.
Payment by 15th of following Month - SSI units have to pay duty by 15th of following month, while large units have to pay duty by 5th of following month. Both have to pay duty in March by end of the month.
Export procedures for SSI - The SSI units not covered under excise provisions have to follow simplified export procedures. They do not have to prepare ARE-1 form etc. The procedure has been discussed in a previous chapter.
Sending material for job work by exempt SSI unit - SSI unit can send his raw materials or semi-finished material to another unit for job work. Such another unit can carry out job work and return to SSI unit without payment of duty. The SSI unit can do further processing on these inputs and clear his final product without duty if his total turnover is below Rs. 150 lakhs.
The SSI unit has to file two declarations with Assistant / Deputy Commissioner for this purpose. The job worker may be a small unit or large unit. The job worker does not have to pay duty if the SSI unit sending goods for job work follows prescribed procedure. - refer notification Nos 83/94 and 84/94 dated 11.4.1994.
Exempted small units Exempt from registration - Exempted small units, having turnover below Rs. 150 lakhs, which are exempt from duty, are also exempt from provisions of registering their unit with excise authorities.
These small units, which are exempt from registration, do not have to follow any other excise formality. However, they have to maintain their own records of manufacture and clearance, to prove that their turnover is less than Rs. 150 lakhs per year.
While calculating the turnover, the export turnover is not to be considered. Thus, even if the export turnover exceeds Rs 150 lakhs, no registration is necessary if domestic turnover ('home consumption' in excise terminology) is less than Rs 150 lakhs - [MF(DR) circular No 284/118/96-CX dated 31.12.1996].
Visit of officers only with prior approval - Excise inspectors, preventive parties and audit parties can visit SSI unit only with specific permission of Assistant Commissioner and for a specific purpose. They have to enter relevant particulars in Visitors book maintained by registered person - CBE&C Circular No. 19/92-Cx.6 dated 18-12-1992. - similar earlier telex F No 233/17/86-CX dated 10.3.1986.
Audit of SSI unit once in two to five years - Audit of SSI units should be done only as per following frequency - (a) Units paying duty of Rs one crore or above (PLA) in financial year should be audited every year. (b) Audit of units paying duty of Rs 10 lakhs (PLA) and above but less than Rs one crore (PLA) in financial year, should be normally audited once in two years. (c) Not more than 20% of units paying duty less than Rs 10 lakhs in a financial year shall be audited every year. Selection will be based on risk pattern as above. [Thus, such small units may be audited only once in five years]. – CBE&C circular No. 580/17/2001-CX dated 29-6-2001.
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