Excise for reeadymade garments

Page no : 2

suresh b.vaishnav (partner) (30 Points)
Replied 17 March 2011

i am manufacture in readymade garments.during the year 20010-2011 total tuornover was rs. 3.5 crors. wether i am liable for exice duty.in current f.y 2011-2012 in my current year tornover is not going to exceed rs 4 cror.pls advise me on point of basic exemption limit.

thanks

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Pankaj Arora (Learner) (3134 Points)
Replied 17 March 2011

you could enjoy SSI Exemption limit for current year too….

SAMAR JEET SINGH (CA) (72 Points)
Replied 17 March 2011

Hi,

SSI exemption is based on the preceeding year turnover if your T.O. did not excced 4 crores than in the current Financial year you are eligible for the ssi exemption.

Exemption limit is 1.50 Crores on the domestic clearances and than normal rate of duty apply above the said limit.

However unit has to give declaration to the department where the value exceeds 90 lakhs in the preceeding financial year.

For taking exemption upto 1.50 crore no cenvat on inputs should be availed else eligibility for exemption is lost.

In your case you would be eligible for the exemption of 1.50 crore in the current year.

Warm regards

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 18 March 2011

Originally posted by : venkatachalapathy
	Dear Sir, one of the comany have head office at bangalore and they opened a branch at tamilnadu. So they issue the invoice from tamilnadu to his foreign buyers for export Sales. But they mentioned his head office address in his Export Invoice. Is it correct by income tax act? or wrong?. Because the assessing authority (Tamilnadu) has talked with me if any concern have opened a branch in tamilnadu. the concern people has issued the invoice from branch office address only. Regards, P.VENKATACHLAPATHY.MBA SALES TAX PRACTITIONER

for sake of excise rules the company always issue invoices for exports from principal place of manufacture, and irrelevent to branchs, the whole export turnover is the part of principal place of manufacuture only in the eyes of excise,

if they issue invoice to tamilnadu then it would amount to stock transfer which is not a good practise for export purpose, however the invoice of tamilnadu branch must have to carry the headoffice address and branch address both.