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Ssi exemption doubts - pl clarify

Madhavi (CA - FINAL) (1342 Points)

29 March 2013

hai i ddi ssi in Central excise.

I am having these doubts pl clarify

1. What is this Rs.150 Lakhs and Rs.400 lakhs - which we have to take exemption

2. Clearences and turnover differences what?

3. Cenvat credit in this SSI

4. what are inclusions to 400 lakhs and 150 lakhs

I need clarity about all these things. where i am confused. pl reply me point wise immediately

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6 Replies

RAJARSHI DAS (Student) (150 Points)
Replied 30 March 2013

Rs 90 Lacs--> Declaration is to be given by SSI Units it TVOC during preceeding F Yr is Rs 90 LACS / MORE

Rs 400 Lacs--> An Assessee whose Aggregate Value of Clearances for all Excisable Gs for Home Consumption DOES NOT exceed Rs 400 Lacs in Preceeding F Yr will be entitled to SSI exemption in Current Yr .

Rs 150 Lacs--> see below

Value of Clearances Duty Structure

0 - 150 Lacs in Current Yr 0% without Cenvat Facility. But CC on

excise duty paid on Capital Gs will be

available

Above 150 Lacs in Current Yr Normal Duty applicable along with CC

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(Guest)

90 lacs:the declaration to be filed every year when the value of clearances in the PY exceeds 90 lacs

400lacs:Eligiblity to claim exemption i.e the value of clearances of excisable goodsfor home consumption does not exceed 400 lacs in the PY year then the SSI unit is eligible to claim exemption n the FY.

150 lacs:turnover upto first clerances made on or after 1april of FY-no duty payable upto150 lacs -dutyexempt

but over 150 lacs :normal duty payable.

and if turnover exceeds 400 lacs in this year then for next financial year the unit cannot claim exemption

(Guest)

turnover to be included :

turnover of goods exempted under other notification to be included.

for 400lacs:-if goods or exempted from any other notification other than SSI and job work exemption notification ,it will be included in calculating 400 lacs limit

however if goods are exempted under any other notification other than SSI exemption, it will be excluded from calculating 150 lacs limit

2.goods manufactured in rural area with other brand name to be included(,example khadi village,national small scale industries)i.e for these units upto 150lacs exempt.

but

that turnover which is cleared without payment of duty will have to be included for calculating 400 lacs limit

3.Export to nepal and bhutan(to be included even if received in foreign currency)

4.goods cleared with payment of duty to be includedalso goods cleared under compoundede levy scheme

5.turnover of non excisable goods.turn over of goods charged to nil duty.

(Guest)

cenvat credit

credit for input and input services not available(when the SSI unit enjoys exemption)

cerdit in respect of Capital goods can be availed

but

utilisation is possible only after the clearances cross 150 lacs.that means upto 150lacs clearances,credit of CG cannot be utilized

Madhavi (CA - FINAL) (1342 Points)
Replied 30 March 2013

Thank you sunitha and rajasri for your responses

Pl let me know the brand name goods manufacturer and any main point relating to this

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PSPSPS (Practicing) (1344 Points)
Replied 31 March 2013

This is Just a waste of Time. Mam just Pick the Practice Manual & all your Queries raised being of basic Concepts & Knowledge will get Cleared in Practice manual reading