exemption limit

[AFSAR UDDIN]

I am a SSI unit I am going to set up a eva sole factory , whether from the first sale excise is chargable or not.If not what is the exemption limit.

[Mahir S]

The exemption limit for SSI from payment of excise duty is ₹ 150 Lakhs rupess for clearances made on or after the 1st day of April in any financial year.

If you avail cenvat credit on the inputs received in your factory, then duty is to be paid from the first clearances.

Please study central excise Notification No. 08/2003 C.E. dated 01.03.2003 for further clarification relating to SSI exemption limit for units not availing CENVAT credit.

AI Summary

SSI exemption limit for excise applies to clearances from the first day of April unless unit avails CENVAT credit. SSI units are exempt from excise duty on clearances up to the prescribed annual threshold for clearances made on or after the first day of April, but an SSI unit that avails CENVAT credit must pay excise duty from the first clearance; consult the controlling notification for procedural details.