MANUFACTURING & TRADING TURNOVER IS CLUBED FOR SSI EXEMPTION

[Bipin Patel]

Manufacturing turn over is 130 Lakh + Pure trading turn over is 32 Lakh

​Weather it is calculated 162 Lakh for SSI Exemption Limit Crossed.

My unit is ssi unit ,Should I Have to Apply for Registration Right Now,

[Mahir S]

Sir,

Trading done specifically without any manufacturing activity is not to be counted for excise turnover purpose.

[YAGAY and SUN]

Dear Bipin,

It is settled legal position that turnover of traded goods along with own manufactured goods would not be included in the turnover of SSI for calculation of limit of ₹ 150 lakhs.

In CCE vs. CMC Computers 2005 (182) ELT 20 (SC 3 member bench), it was held that value of traded items is not required to be added. In this case, bought out goods/items were supplied to buyer alongwith own manufactured goods on optional basis.

This is for your kind information and records.

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

SSI turnover aggregation: trading turnover excluded from exemption limit calculation; bought out goods need not be added. Trading turnover from goods bought and sold without manufacturing activity is excluded from SSI turnover for exemption limit calculation; bought out or traded items need not be added to a manufacturer's excise turnover when assessing entitlement to the SSI exemption.