03 February 2014
We provide the following services
A) Manufacture & Supply of Display Furniture B) Onsite Interior Works like Painting, Carpentry, Electrical Works, C) Transportation of goods and Installation services.
Our Total Sales (includes all the above 3 categories(A+B+C) including taxes) is Nearing 150 Lakhs in this Financial year.
Now, How & when we will become a excisable unit. Kindly clarify.
04 February 2014
You are providing Services & Manufacturing the goods And every manufacturer is required to register in Central Excise after crossing the turnover 150 lakhs (declaration to be filled after crossing 90 lakhs in previous year for SSI Unit )
For service tax registration limit is 10 lakhs, and when you cross the limit you registered in Ser Tax and you have to charge service tax.
21 July 2024
Based on the information provided, here's a breakdown of how excise duty applicability might apply to your business:
1. **Excise Duty Applicability:** Excise duty is generally applicable to the manufacture of goods in India. Let's analyze each of your services:
- **A) Manufacture & Supply of Display Furniture:** Manufacturing and supplying display furniture would typically attract excise duty if the turnover of such goods exceeds the threshold limit prescribed by the government. As of now, the excise duty is subsumed under GST, and you would need to check GST thresholds for registration and compliance.
- **B) Onsite Interior Works (Painting, Carpentry, Electrical Works):** Services like painting, carpentry, and electrical works are considered services under GST. They are not subject to excise duty because excise duty traditionally applies to goods manufactured, not services provided.
- **C) Transportation of Goods and Installation Services:** Transportation services and installation services are also considered services under GST. They do not attract excise duty.
2. **Turnover Calculation for Excise Duty:** - Excise duty in the traditional sense applied to the value of goods manufactured and cleared. If your turnover of manufactured goods (Category A) exceeds the threshold limit (if applicable), then you would need to register for excise duty. - The turnover or sales figure typically includes the value of goods sold excluding taxes. However, for excise duty purposes, you would consider the value on which excise duty is calculated, which is usually the assessable value of the goods before the addition of taxes.
3. **Implication of Onsite Execution (Non-manufacturing) Services:** - Services provided onsite such as painting, carpentry, and electrical works are not subject to excise duty. They fall under the purview of GST if they are taxable services under GST laws. - The turnover from these services contributes to your total turnover for GST purposes but not for excise duty.
4. **Registration Threshold:** - Since excise duty is now subsumed under GST, you need to consider GST registration thresholds. As of now, GST registration is required if your aggregate turnover (including all taxable supplies, exempt supplies, exports of goods and/or services) exceeds the threshold limit (INR 20 lakhs for normal states; INR 10 lakhs for special category states). - For excise duty registration (which is now under GST), you would need to monitor your turnover of manufactured goods specifically to determine if you exceed the threshold that requires registration.
5. **Conclusion:** - Excise duty (now under GST) primarily applies to manufactured goods, not services or goods where taxes are already paid (like transportation and installation services). For your business, the critical aspect would be to monitor the turnover of manufactured goods (Category A) to determine if you meet the threshold for GST registration that includes excisable goods.
To ensure compliance and proper understanding of your specific case, it's advisable to consult with a qualified tax professional or chartered accountant who can provide guidance tailored to your business activities and the latest regulatory requirements under GST.
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