about the exemption of 1.5 crore 4 ssi units

[MEHUL ASHAR]

Respected Sir,

As regarding above subject, is there any change made in the exemption limit of 1.5 crore for ssi units in the budget-2015-16 dated 28-02-15 or not.

Please reply.

[MUKUND THAKKAR]

No change in budget limit remain same..

[Mahir S]

Yes, the exemption limit of 1.5 crore is the same and there is no any change in the budget.

[Guest]

Dear Sir,

My question is regarding the excise excemption to SSI units.

Suppose if a company has a turn over less than 30 lacs in the previous financial year, then how it can avail the benefit of cenvat exemption

Does it requires any registraions for claiming the excise paid on input goods purchased for manufacturing products.

For example,

A is the manufacturer of the raw material and charges excise duty to B.

B is the manufacturer of the product and its turn over is less than 30 lacs previous year,

C is the purchaser of the goods manufactured by B.
SO, how B will settoff the excise paid on the raw material purchased from A, so that the excise paid by B does not encounters its cost price.

If SSI units are excepted from central excise duty upto 1.5 crores, then how to avail this exemptions and buy the raw material

Thank You

[MEHUL ASHAR]

THANK U SIR U GUIDED ME WELL.

[LALIT MUNOYAT]

If B want to avail cenvat of duty paid to A, then B has to opt out of SSI exemption notification.

[Guest]

?Thank you Mr Lalit. Does this means that B has to take Excise Registration

[Mahir S]

Sir,

B has to take central excise registration and then can avail cenvat credit and pay duty from the first clearance. Provisions is provided under the excise law to take excise registration even if the 1.5 lacs exemption limit is not crossed.

You may refer and study following Notification no. for all your queries :-

SSI exemption, with effect from 1/4/2003 for units not availing CENVAT credit Notification no - 008/2003 - Dated 1-3-2003 - Central Excise - Tariff,

AI Summary

No Change in SSI Exemption Limit in 2015-16; CENVAT Credit Requires Excise Registration Despite Low Turnover A discussion on a forum addressed the exemption limit for Small Scale Industries (SSI) under Central Excise, specifically whether the 1.5 crore limit changed in the 2015-16 budget. Respondents confirmed no changes were made. A participant inquired about availing CENVAT credit for a company with a turnover below 30 lakhs, questioning the need for excise registration to offset excise duty on inputs. It was clarified that to avail CENVAT credit, the company must opt out of the SSI exemption and register for central excise, even if the turnover is below the exemption threshold.