Rural area SSI exemption under 8/2003

[sv bhasker]

Dear experts

An assesee sends raw material and  packing material to a manufcaturer in rural area and gets a product with  'X' brand  manufactured .  He pays the rural area manufacturer,  per  unit basis.In addition, he also manufactures 'X' brand product  in his factory. 

(a)For computing exemption turnover under Notfn 8/2003-CE, is it necessary to add turn over of rural area manufacturer to assessee's own turn over in a year.OR

(b) In the given circumstances, is the exemption under Notfn 8/2003-CE, is available separately  each to the assessee and rural area manufcaturer. 

AI Summary

Rural Manufacturer's Turnover Must Be Added to Assessee's for Exemption Under Notification 8/2003-CE; Independent Exemption Allowed An assessee sends raw and packing materials to a rural manufacturer for producing a product under the 'X' brand and also manufactures the same product in their factory. The discussion addresses whether the turnover of the rural manufacturer should be included in the assessee's turnover for exemption under Notification 8/2003-CE. It is clarified that the rural manufacturer's turnover must be added to the assessee's turnover for exemption purposes. However, the rural manufacturer can independently avail the exemption for goods produced under a brand name in a rural area, without including these goods in their exemption limit calculation.