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%

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.