ssi limit applicable

[Guest]

while calculating the s s i exemption limit of rs.4.00 crore,but we made credit note of rs.14.00lacs( sales return)but sales pertaining to 2010-11, however can we take sales turnover up to 3.99 crore ?.

[Surender Gupta]

There is no provision in Central Excise notification, no. 8/2003 CE Dated 1-3-2003 to reduce the value of sales return from the turnover of the previous year for the purpose of determination of eligibility of SSI exemption for the current year.

AI Summary

SSI exemption eligibility cannot be reduced by sales returns when computing turnover for exemption purposes under the notification. Sales returns and credit notes from a prior year are not deductible from previous-year turnover for determining SSI exemption eligibility; the governing notification contains no provision allowing reduction of past turnover by such returns when assessing entitlement to the SSI exemption.