SSI limit applicable

[Surya Moorthy]

If a firm has levy duty from March 2011' for their goods @1% of eligible turnover(after adjusting SSI limit) but its total turnover at the end of the FY 2010-11 would be less than Rs.4 Crores then whether it is necessary to levy duty from 1st april 2011' or after acheiving the SSI Limit of 1.5 crores for FY 2011-12? 

[CASeetharaman KC]

If the taxable turnover of the firm for the preseding financial year exceeds 4 crores limit  then the SSI exemption of 1.5 crores would not be available to the firm for the current financial year and the firm needs to pay excise duty on all the taxable turnover during the current financial year. In ths instant case you have mentioned that the total taxable turnover for FY 2010-11 does not exceed 4 crores hence the SSI exemption limit of 1.5 crores would be available for the firm for FY 2011-12. The firm needs to pay excise duty only on the turnover in excess of 1.5 crores for the current financial year.

[Surya Moorthy]

Thank you for reply Sir.

AI Summary

Firm Eligible for SSI Exemption; Excise Duty Applies Only on Turnover Over Rs. 1.5 Crores for 2011-12. A firm inquired about the applicability of excise duty if its turnover for the fiscal year 2010-11 is less than Rs. 4 crores. An expert clarified that since the turnover does not exceed Rs. 4 crores, the firm is eligible for the Small Scale Industry (SSI) exemption limit of Rs. 1.5 crores for the fiscal year 2011-12. Consequently, the firm is required to pay excise duty only on the turnover exceeding Rs. 1.5 crores during the current financial year.