Manufacturing

[Raja krishnan]

Dear Sir,

our client is manufacturing and marketing some consumer product like Body soap and Shampoo and already they are having SSI certificate. In this connection please clarify if they obtain any other license from the Government department for manufacturing particularly the FMCG items and their total turnover is coming under 5 Lakhs only.

[DR.MARIAPPAN GOVINDARAJAN]

Your query is not specific.

[YAGAY andSUN]

Dear Rajesh,

From your query we understand that you are asking for clubbing of turnover for the purpose of payment of Central Excise duty. If you don't cross the threshold limit then no need to pay the Central Excise duty.

Regards

YAGAY and SUN

Management, Business and Indirect Tax Consultants

AI Summary

Central excise threshold: manufacturers below the turnover limit are not liable to pay central excise duty. Manufacturer of soap and shampoo with an SSI certificate asked whether additional government licences are needed and whether their turnover under five lakhs affects obligations. The advisory treated the issue as one of clubbing of turnover for Central Excise duty and stated that where combined turnover remains below the statutory threshold, there is no liability to pay Central Excise duty.