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Ssi exemption threshould limit under excise law

CA Sanjay Baheti (PROPRIETOR) (1155 Points)

24 January 2012

One of my client being an Individual engaged in Manufacturing cum Trading activities from the same Factory Premises.

Till last year i.e.F.Y.2010-11 the total turnover was less than Rs. 150 Laks hence he was not covered under Excise law so far SSI Exemption Threshould limit was concerned.

Now during the current F.Y.2011-12 the Combined turnover i.e. both manufacturing as well as trading is likely to be exceeded Rs. 150 Lacs.

Now query is whether both turnover i.e. Manufacturing as well as Trading is to be considered/counted for the purposes SSI exemption Limit so far coverage under Excise law is concerned or not towards excisabilty of Products.

That is only turnover related to Manufacturing activities is considered/counted for the purposes of SSI Exemption threshould limit is concerned.

Please reply.

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2 Replies

U S Sharma (glidor@gmail.com) (21063 Points)
Replied 24 January 2012

Originally posted by : CA Sanjay Baheti
	One of my client being an Individual engaged in Manufacturing cum Trading activities from the same Factory Premises. Till last year i.e.F.Y.2010-11 the total turnover was less than 150 Laks hence he was not covered under Excise law so far SSI Exemption Threshould limit was concerned. Now during the current F.Y.2011-12 the Combined turnover i.e. both manufacturing as well as trading is likely to be exceeded 150 Lacs. Now query is whether both turnover i.e. Manufacturing as well as Trading is to be considered/counted for the purposes SSI exemption Limit so far coverage under Excise law is concerned or not towards excisabilty of Products. That is only turnover related to Manufacturing activities is considered/counted for the purposes of SSI Exemption threshould limit is concerned. Please reply.

1. for excise purpose , only manufacturing turnover is to be considered.

2. trading of of goods which are similer to manufactured goods from same premises may invite troubles for yourself, as the department will consider the same as manufactured goods from your own factory, as the trading goods are without any excise duty documents from seller side, we belive,

3. to get benefit, one have to maintain full inventory of manufactured and traded goods under diff registers, and better to maintain separate series of invoice for both ( under vat system tax invoice it will also be troublesome to maintain the diff series)