CA.CMA.Prasanna Ganapathy.R (ACA,Grad.CWA) (135 Points)
14 October 2010Hi all...
We know that SSI Exemption available when the Turnover of the Previous year does not exceed 400 Lakhs...
My Question is what will happen if the assessee has started its business only in the current year...
Is the Assessee eligible for SSI EXEMPTION????
C.A. LINESH PATIL
(CA)
(910 Points)
Replied 14 October 2010
yes,SSI unit is eligible for exemption .
Because as per the requirement of notification number 8/2003 the unit must have turnover less than OR equal to 400 lakhs in a previous year.
and in your case as unit was not in existence in a previous year that means its turnover was 'zero' which is less than 400 lakhs.
hence it is eligible for exemption in a current year.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 15 October 2010
| Originally posted by : prasanna | ||
 |
Yes pr yr value of clearacnes = manufactured goods removed [ not turnover] is NIL therefore eligible. |
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CA Sandeep Kumar
(Audit Assistant)
(804 Points)
Replied 15 October 2010
The SSI unit can opt for exemption, in case the turnover exceeds 400 lakhs in the year of exemption, exemption shall not be available in the immediate succeding year.
Good to see Madhukar Sir replying. Though we do not have the opportunity of getting trained under him, interaction through caclubindia is a great benefit.
Sir, I do not have any experience in Indirect taxation. So my question, though the notification uses the words 'clearances', can it be assumed as turnover???
CA.CMA.Prasanna Ganapathy.R
(ACA,Grad.CWA)
(135 Points)
Replied 18 October 2010
thank you so much friends.....
CAclubindia
