26 September 2010
Dear Experts, Very urgent sir.... If a company or firm or individual carrying in the name of sole proprietor is an Small Scale Industry. One big advantage what the SSI has is non-payment of Excise duty for the turnover up to Rs. 1.5 crores. My doubts are 1)This exemption is available only for first year alone or also for subsequent years until the turnover crosses Rs. 4 crores?
2)Assume the SSI has the turnover of Rs. 3.5 crores does he need not pay excise duty for Rs.1.5 crores provided all the conditions for claiming exemption in excise duty has been fulfilled (such as not using others brand name etc)
27 September 2010
Yes this exemption is available untill the turnover crosses the 4 crore mark.
Say for example this years turnover is 3.99 crores then in next year you can claim SSI benefit upto 1.50 crore. Above 1.5 crore you have to pay normal duty.
If in any year the T.O. crosses the 4 crore mark then you are out of SSI for ever.
CAclubindia
