Sir/Madam,
Hi, I am Surya.I need clear explanation for this issue.
A firm has done sales Rs.2.1crores upto Feb 2011' for FY 2010-11. At the same time it is eligible to avail SSI exemption as fully exempted goods(FY 2009-10 turnover is Rs.4crores). From march 2011' their goods attracts duty. Now, whether if it will done sales upto Rs.12 lacs for march 2011' the firm is liable to pay duty @1% for March 2011' or rest of balance of eligible Turnover or no liable to pay duty for FY 2010-11
Thank you!
Firm's Rs. 12 Lacs Sales in March 2011 Taxable After Exceeding SSI Limit; CENVAT Credit Available on Stock A firm with sales of Rs. 2.1 crores up to February 2011 for FY 2010-11 is eligible for SSI exemption as its FY 2009-10 turnover was Rs. 4 crores. From March 2011, goods become taxable at 1%. The firm queries if it must pay duty on Rs. 12 lacs sales in March 2011. Responses clarify that if the aggregate value of clearances in FY 2009-10 was less than Rs. 4 crores, a Rs. 1.5 crore exemption applies. Sales exceeding this limit become taxable, and CENVAT can be availed on stock when crossing the exemption limit. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
