about 10lacs exemption for Wedding cards

[Surya Moorthy]

Sir,

    In a firm, if wedding card attracts duty from March 2011' then upto 1/12th of 150lacs will be allowed as exemption or 10Lacs? but our turnover has been exceeded 150lacs prior to feb.2011'. And i also noted that our goods have no any duty upto feb 2011' .

[Rama Krishana]

There is a big difficulty in terms of SSI exemptions for the month of March 2011. In the absence of any change in notification 8/2003, one view is that you can get fresh exemption of Rs. 1.5 crores in March 2011.

AI Summary

SSI exemption for manufacturing turnover: transitional treatment may permit fresh exemption despite prior threshold breach. Whether production of wedding cards will attract SSI exemption pro rata for March 2011 or a fixed lesser exemption where the firm's turnover exceeded the SSI threshold before February 2011 is questioned. The recorded reply advises that, given difficulty in applying SSI exemptions for March 2011 and absent any change to the controlling notification, one view is that a fresh annual SSI exemption may be available in March 2011, making the relief dependent on the notification's terms and on transitional treatment of turnover and duty commencement.