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

Clarification on SSI exemption: Trading goods' value excluded from calculation, but separate records required for compliance. A query was raised regarding the applicability of the SSI exemption under Central Excise Notification No. 08/2003 for businesses involved in both trading and manufacturing. It was clarified that separate records must be maintained for trading goods, and the value of traded goods does not need to be included in the calculation for SSI exemption. However, managing both activities within the same premises is considered challenging and may invite complications, as noted by the participants in the discussion.