SSI LIMIT for Investment

[Ajit Gandhi]

We are going for expansion, and after expansion our books will have over ₹ 10 Crore of Investment. We need to know if we are still an SSI. The investment structure is like : Land & Building ₹ 5 Crores and Machinery over ₹ 11 Crores. Out of ₹ 11 Crores, ₹ 1.5 Crore is spares & machine installation, but we have capitalized the same in our books. Now for SSI purpose we have made a seperate chart stating actual investment in plant & machinery, which is ₹ 9.5 Crores. Please give your feedback, stating are we eligible to be an SSI unit.

[YAGAY and SUN]

Dear Ajit,

You may still avail the benefits of SSI exemptions. Please also check the State Specific laws in this matter also.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

[Kailash Singhal]

NOW LIMIT OF RS 25 LACS FOR MICRO UNITS , RS 5 CRORE FOR SMALL UNITS AND RS 10 CRORES FOR MEDIUM SCALE UNITS FOR INVESTMENT IN PLANT AND MACHINERY AS PER MSMSE ACT 2006 . CERTAIN TYPE OF EXPENSES AND INVESTMENTS ARE NOT COVERED BY ELIGIBLE INVESTMENT NOTIFICATION WHICH IS ATTACHED TO MSME REG PART I/II

REGARDS

CA KC SINGHAL, SILVASSA

AI Summary

MSME investment thresholds determine SSI eligibility; check whether capitalized spares and installation count toward plant and machinery investment.
The core issue is whether capitalized spares and machine installation should be included when determining eligible investment in plant and machinery for SSI/MSME classification; MSME rules set investment-based categories and specify that certain expenses or investments are excluded from eligible investment, and state-specific rules and registration notifications must be checked to confirm treatment of capitalized items.