BASIC EXEMPTION LIMIT FOR REGISTRATION IN EXCISE

[BAL KRISHAN GARG]

Dear All Members ,

One of my client in engage in manufacturing in ceiling fan blades , exhaust fan blades and during the current year he had sales nearly Rs.1 Crore . Whether he is liable for Excise Registration ?

What is the basis exemption limit for Excise Registration in terms of turnover ?

I will be highly oblidged please clarify the limit of non required Excise Registration comes under SSI .

Thanks

BKGARG

[YAGAY andSUN]

Under SSI regulations this limit is up-to 1.50 crore and up-to 4.00 crore paying the duty on concessional rate is optional.  After crossing this limit you would have to pay the excise duty on full rate.

[CASeetharaman KC]

Exemption under notification, no. 8/2003 CE is applicable to SSI units, the main criterial which is taken into account for deciding the eligibility for exemption is that the turnover of Rs. 4 crores in the preceding financial year.

According to the conditions of the notification, a manufacturing unit can avail the SSI exemption upto Rs. 1.5 crore in the current financial year, if the turnover of the previous year is not exceeding Rs. 4 crores.

AI Summary

SSI exemption: registration not required below prescribed turnover; concessional duty option available until a higher turnover threshold. Eligibility for excise exemption under the SSI framework depends on the preceding financial year turnover: if a manufacturing unit's prior-year turnover does not exceed the higher eligibility threshold, the unit may claim SSI exemption in the current year up to the lower turnover ceiling; turnover between the lower and higher ceilings may be subject to a concessional duty option, while crossing the higher ceiling removes entitlement to the SSI concession and attracts full excise liability.