Excise duty
This query is : Resolved
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.
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.
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.
04 February 2014
Dear Sir,
My query is 150 Lakhs is the Basic Value or Including Taxes for Excise Registration.
Also, our turnover/total sales includes onsite execution (non-manufacturing). What is the implication of this w.r.t Excise duty.
My query is 150 Lakhs is the Basic Value or Including Taxes for Excise Registration.
Also, our turnover/total sales includes onsite execution (non-manufacturing). What is the implication of this w.r.t Excise duty.
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.
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- GST on export of services and Input Credit
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
