SSI CENTRAL EXCISE EXEMPTION - REG

[venkat eswaran]

Dear all,

we are manfacturer of paints and supply 100% to one of the major company. Some times we bought RM from that major company on payment of excise duty for production. Most of the matl we bought outside and produce.

our annul turnover is less than 1.5 cr. Whether we can avail SSI Exemption from Central Excise?

Whether we have to register with central excise dept to get exemption from BED in invoice OR we can raise invoice as such without making ED and only slaes tax in invoice without informaing Central Excise dept.

Pl give ur views

Thanks in advance

While invoicing to that major co. we used to raise BED 14%

[Rajagopalan Ranganathan]

Sir,

From the facts narrated by you, in my opinion, you are an independent manufacturer. Therefore you are eligible to avail small scale exemption. You have to register yourself with the department when your turnover exceeds the limit of ₹ 1.35 crores, that is, 90 % of 1.5 Crores. You can raise an invoice charging only VAT and not Excise duty. If you are a new manufacturer then you have to file a declaration stating that your turnover is not likely to exceed the limit of 1.5. Crores during current financial year.

[Mahir S]

Sir,

You can avail SSI exemption from Central Excise. However, you have also mentioned that you are raising invoices by charging BED 14 %.

In that case, the question of availment of SSI exemption does not arise if you are paying duty.

However, if you avail cenvat credit then u pay duty at time of clearance of finished goods, Or else if the finished goods are cleared under BRAND NAME.

[YAGAY andSUN]

You can get the SSI Registration if you duly fall under the criteria of SSI units otherwise not.

[ashish chaudhary]

Though you may claim SSI exemption but decision making should be based on customer and vendor profile. If you customers are eligible to take the credit and raw material used in the production process is duty paid, it is suggested to get registered under excise, take credit of duty charged by your vendor, charge excise duty on clearance and let the customer take the credit. This exercise could save 4-8% of the cost (depending upon the duty paid component in raw material and percentage of margin) of the product.

[varun arora]

Rajagopalan Sir you mention that Assessee has to get registered with the deptt. when turnover exceeds the limit of 1.35 crores i.e. 90% of 1.5 crores. Will you please refer the same because i remember Intimiation limit is of 90 lakhs.

And further If i am a new mfrer then do i file the declaration mandatorily to the deptt you have mentioned, if yes then what will be the format sir.

AI Summary

SSI exemption: manufacturers may invoice without excise if turnover remains below the statutory threshold; registration and declaration apply Eligibility for SSI exemption requires independent manufacture and turnover below the statutory small scale threshold; such units may invoice without central excise and charge only VAT. New manufacturers anticipating turnover below the limit should file a declaration that turnover is not likely to exceed the threshold during the year. Registration becomes necessary once turnover approaches the notification limit, with practitioner discussion noting a ninety percent benchmark for intimating registration.