I want to know if a person is doing a business in proprietorship and in other (A Private Ltd. Co.) he/she and his/her mother/father is director. Is there any provision that their turnover for the excise limit registration is to be clubbed? Both are mfg. of same product. If yes please provide me related notification, circular or order.
13 November 2010
Clubbing of turnover under excise act only for the purpose of SSI exemption as under (a) If the manufacturer has more than one factories (even at different places), the turnover of all factories (belonging to same manufacturer) have to be clubbed together for calculating the SSI exemption limits of Rs 150 or 400 lakhs. (b) It is also possible that more than one manufacturers may clear the goods from the same factory e.g. part of factory may be used by one manufacturer and another part of same factory may be used by another manufacturer. In such cases, all clearances from the factory has to be considered even if the clearance is of different manufacturers for calculating the SSI exemption limits of 150 or 400 lakhs. (c) Some times, a manufacturer may use the factory for part of the year and then another manufacturer may use the same factory for remaining part of the year. In such cases, the turnover of different manufacturers has to be clubbed for calculating the SSI exemption limits of 150 or 400 lakhs, if it is from the same factory. (d) Clubbing is also possible if two units are sham or bogus or if there is unity of interest and practically they are one.
CAclubindia
