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excise exemption limit for SSI??

lathesh (accountant) (24 Points)

30 September 2010

Hi,

I wanted to know about the excise exemption limit for SSI....

whether its 1.5cr r 3 cr annual turnover....

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12 Replies

Harsha (Chartered Accountant CS (Final)) (227 Points)
Replied 30 September 2010

Exemption for Small Scale Units will be available as per Excise notification no.8/2003. As per this Exemption notification, Exemption will be available upto Rs.1.5 crores. From the clerance after 1.5 crores, Excise duty will be applicable.

For availing this exemption, the turnover in the previous year shoul't exceed 4 crores. If turnover in the previous year exceeds 4 crores, in the current year exemption is not available & ED should be paid from the first billing.

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Anand (ACCOUNTS EXECUTIVE) (68 Points)
Replied 01 October 2010

Harsha Ji,

I am agreed with your views we also follow that rule i.e. excise will be charged @ 10.30 (current rate) on manufacturing items if the turnover crossed 1.5 cr.

CA rafiq (ca) (129 Points)
Replied 11 October 2010

turnover is different and clearance is different. u should use word clearance from factory of exisesable goods which is speifeid in notification 8/2003. the limit is 1.5 crores.

Vipul (account) (28 Points)
Replied 30 November 2010

Can any one asnwer to my followng question and example.

following is my turnover till oct 2010

Local Sale (CST + VAT) Rs. 1,20,00,000/-

Export (Deemed) Rs. 10,00,000/-

Export (Direct) Rs. 25,00,000/-

Total Sales 1,55,00,000/-

So how they calaculate that

So SSI exemption for excise calculate Export Deemed and Direct or not.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 30 November 2010

@ vipul

Exemption limit of 1.5 Cr is for HOME CONSUMPTION only,

However if the unit is a declarant unit, they have to show the exports in quarterly / annual returns and nly home consumption before vat/cst is taken in account of "progressive total of 150 Lacs"

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Vipul (account) (28 Points)
Replied 01 December 2010

Dear sir,

What do you mean by Home Consumption? as you are aware that CST and VAT is know as home consumption, but what about Deemed Export i.e. Merchant Exporter and SEZ? It is called Home Consumption or not. Please explain in brief if you can.

Awaiting your reply.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 01 December 2010

Originally posted by : Vipul
	Dear sir, What do you mean by Home Consumption? as you are aware that CST and VAT is know as home consumption, but what about Deemed Export i.e. Merchant Exporter and SEZ? It is called Home Consumption or not. Please explain in brief if you can. Awaiting your reply.

if the procedure of Bond/ CT-1/ARE1/3 is maintained for merchant export / SEZ, its excluded from home consumption, for units who are not registered, have to maintain the exemption forms related to VAT/CST to catagorise these to export ( direct or indirect does not mattter)

Vipul (account) (28 Points)
Replied 03 December 2010

we are not in excise so there is not change of Bond/CT-1/ARE1/3.

As we are in SSI limit, i just want to know about Home consumption meand CST and VAT only OR Deemed Export i.e.( Merchant Exporter & SEZ )and Direct Export is also calaculate in 1.5cr.

Please reply.

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 04 December 2010

Originally posted by : Vipul
	we are not in excise so there is not change of Bond/CT-1/ARE1/3. As we are in SSI limit, i just want to know about Home consumption meand CST and VAT only OR Deemed Export i.e.( Merchant Exporter & SEZ )and Direct Export is also calaculate in 1.5cr. Please reply.

if u are not in excise control, then VAT / CST has its own proforma to establish the transaction for export or deemed export, those documents are enough to exclude the transactions from gross sales, and those are excluded for 150 lacs home consumption.

Vipul (account) (28 Points)
Replied 04 December 2010

So you mean, If i am not in Excise, then only CST and VAT sales is know as Home Consumption.

And Deemed Export and Direct export is not calculated in 1.5 cr.

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U S Sharma (glidor@gmail.com) (21063 Points)
Replied 04 December 2010

Originally posted by : Vipul
	So you mean, If i am not in Excise, then only CST and VAT sales is know as Home Consumption. And Deemed Export and Direct export is not calculated in 1.5 cr.

if u have made deemed / direct exports, u must have procured documents
for deemed exports , VAT / CST exemption forms
for direct exports , Shipping bill and other documents stating that goods have been consigned out of india.
on those documents strength the above two type of sales are excluded from Home Consumption calculation
However exempted units even have to apply for code no ( not registration) and submit quarterly return stating these turnovers to the department for progressive total of home consumption ( only for statictis purpose)