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? 

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.