taking benefit of exemption limit of 1.5 crore

[MEHUL ASHAR]

Respected Sir,

                         One of my clients has taken excise registration recently now as he is paying duty on clearance of goods,but from 01-04-14 he wants to take the benefit of 1.5 crore exemption limit can he take if yes what is the procedure let me know please.

[YAGAY andSUN]

Dear Mehul,

You may avail this facility, if you are registered as SSI Unit or dealing in goods reserved for SSI units or the amount invested by you does not crossed the threshold limit as mentioned in the definition of SSI units.

Further, also refer the SSI Notifications, clarifications and circulars as issued by the Central Excise Department from time to time.

 

Regards,

Team YAGAY & SUN

(Indirect Tax Consultants)

[Rajagopalan Ranganathan]

Sir,

     If you want to pay duty on the excisable goods though it is eligible to avail SSI exemption under Notification No. 8/2003-CE dated 01.03.2003 as amended, then you have to intimate your intention to pay duty on the excisable goods cleared by you as per para 2 (I) of the said notification.  This option cannot be withdrawn during the remaining part of the financial year.  From 01.04.2014 you can intimate your range officer that you are going to avail the SSI exemption for the first clearance of 1.5.crores.

[MEHUL ASHAR]

Respected Sir,

                           Thank u Sir, u guided me well in this matter, u r great help to me.

THANKING U

AI Summary

SSI exemption option requires formal intimation to the range officer and remains irrevocable for the financial year. Eligibility for the SSI exemption requires SSI registration, dealing in reserved goods, or remaining within the SSI investment threshold; relevant notifications and circulars apply. A dealer who elects to pay duty despite entitlement under the SSI notification must intimate that intention under para 2(I); the election is irrevocable for the rest of the financial year. To claim the first-clearance exemption from the start of the financial year, the assessee must notify the range officer of the intention to avail the SSI exemption for that clearance.