ssi exemption

[amandeep singh]

Whether trading and manufacturing can be done at the same through claiming exemption of 1.5 crore or 4 crore as per notification no. 08/2003 of central excise

[Rajagopalan Ranganathan]

Sir,

You have to maintain separate records in respect of trading goods. Under Central Excise Law there is no bar to trade in goods from the same premises in which manufacturing activity is being carried out. Therefore value of traded goods need not be included to calculate value under SSI exemption Notification.

[Ganeshan Kalyani]

Sir, additionally I would like to submit that the assesse need to maitain separate books of account for trading and for manufacturing. Handling both the business in the same premise is a challenging task. Thanks.

[KASTURI SETHI]

Practically it is to invite trouble.

AI Summary

SSI exemption: trading permitted alongside manufacturing if separate records maintained and traded value excluded from valuation. Central Excise law does not bar trading from the same premises as manufacturing for SSI exemption; the value of traded goods need not be included in calculating the exemption provided the assessee maintains separate records and books of account for trading and manufacturing so that traded goods are accounted distinctly.