ssi exemption

[siby jose]

sir,

we plywood manufacturing firm, first time in 2011-2012 crossed the turnover of Rs.4 Crore for local consumption. Now In 2012-2013 we are paying the duty from 1st April 2012. We proposed to limit the turnover below 4crore in 2012-2013. can we avail SSI Exemption in 2013-2014.

Regarding this matter we discussed with our Central Excise Range office, They says that if once Crossed 4Crore Turnover Once, Should pay duty from 1st april in every financial year in future. Pls inform the rules or notification no for the SSI Exemption.

Thanking You

SIBY

[rajkumar shukla]

The restriction would be for 2012-2013 only. you may refer  notification, no. 8/2003 in this regard

[NEERAJ KUMAR, RANCHI]

Your Range officer is quite correct. Once crossed 4 crore SSI benefit is over.

[rajkumar shukla]

only for next financial year

[MANDAVILLI RAMAKRISHNA]

better to read carefully the relevant provisions in the act.

 

once ssi crosses the turnover limit, they are taxable unlike SERVICE TAX DEALERS.

[rajkumar shukla]

please go through my reply carefully, read the provisions of notification(not Act as mentioned by you) then comment again.

[KIRTIKUMAR PUROHIT]

As per  notification, no. 8/2003 restriction is only for financial year 2012-13 full rate payment of duty  and turnover 2012-13 for year below 4 crore than you can avail benefit of exemption concessional rate of duty in next year i.e.2013-14

[sv bhasker]

Sir,

I agree with the views expressed by Mr Raj kumar and Mr Purohit. If your turnover is 3,99,99,999 as on 31.3.2013, you can avail full exemption upto 1.5Cr from 1.4.2013 under 8/2003 CE as amended.

[NEERAJ KUMAR, RANCHI]

In this context, I wish to put a hypothetical question for discussion, 

If any assessee crossed the limit of Rs 4 crore during any financial year(Sppose 2010-11). Let it be 10 Crore. In the next financial year(2011-12), he can not avail any exemption, but later in the financial year(2012-13), he can avail exemption up to Rs 1.50 Crore. By this way he can save duty upto the extent of Rs 12 lakh roughly. In view of this why not all the assessee take advantage of this. Had I been an assessee I would have doen it every alternate year. Kindly give your views.

AI Summary

SSI exemption rule: crossing the turnover threshold suspends exemption for the next financial year; eligibility can resume thereafter. Crossing the turnover threshold terminates entitlement to the SSI exemption for the immediately following financial year, obliging the assessee to pay duty at full rates from the first day of that year under the relevant notification framework. If the assessee's turnover in the subsequent year falls below the threshold, exemption or concessional treatment under the notification framework can be restored for that later year; the notification also contemplates a lower-tier exemption ceiling for eligible small-scale production in the restored year.