SSI Units - Exemption Under Central Excise - Excise Articles
-
Upload
musheer-basha -
Category
Documents
-
view
12 -
download
7
description
Transcript of SSI Units - Exemption Under Central Excise - Excise Articles
9/7/2015 SSI units Exemption under central excise Excise Articles
http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp 1/10
Home (/) / Articles (default.asp) / Excise (article_display_list_by_category.asp?cat_id=11)
/ SSI units Exemption under central excise
SSI units Exemption under central excise
SSI units & Notification no.8/2003 – CE
a. SSI stands for Small Scale Industries. Notification no.8/2003 provides relaxation to SSI units from centralexcise duty subject to certain conditions.
b. Thus, a manufacturer being an SSI unit is eligible for exemption from excise duty up to a turnover of ₹150lacs (exemption limit) during the current year provided the turnover (aggregate clearances) in the previousyear does not exceed ₹400 lacs. To reiterate, the exemption benefit would be available even if the turnoverin the previous year is equal to ₹400 lacs.
c. Manufacturers can make use of the exemption in the one of the following manners:
i. Claim exemption up to a turnover of ₹150 lacs, pay excise duty (ED) over this limit and avail cenvat credit(CC) on inputs once the limit exceeds.
ii. Without seeking exemption, pay full duty and claim cenvat credit on inputs from the beginning.
(../profile.asp?member_id=198435)
Poornima Madhava (../profile.asp?member_id=198435) on 24 February 2015
(../report_abuse.asp?module=articles)
9/7/2015 SSI units Exemption under central excise Excise Articles
http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp 2/10
How is turnover/aggregate clearances of ₹400 lacs for previous year determined?
Typical format for computation:
Particulars ₹
Goods cleared with payment of excise duty x
ADD (if not included in the above):
Exempted turnover (other than SSI or Job work notification)* x
Goods manufactured in rural area with brand name of others x
9/7/2015 SSI units Exemption under central excise Excise Articles
http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp 3/10
Export to Nepal and Bhutan x
Captive consumption (if final product is exempt) x
LESS (if included in the above):
Export turnover x
Clearances to EOU/SEZ/EHTP/STP/UN** x
Nonexcisable goods x
Goods manufactured with brand name of others on payment of duty x
Job work u/n no.214/86, 83/94, 84/94 etc x
Export under bond through Merchant Exporter x
BALANCE: TURNOVER/AGGREGATE CLEARANCES (₹) x *SSI notification no.8/2003, Job work notification no.214/86, 83/94, 84/94 etc
**EOU: 100% Export Oriented Unit; SEZ: Special Economic Zone; EHTP: Electronic Hardware TechnologyPark; STP: Software Technology Park; UN: United Nations
Specific exclusion from SSI exemption
SSI exemption is not applicable to the manufacturers of the following products:
a. Tea/Coffee
b. Icecream
c. Pan masala/Unbranded chewing tobacco
d. Sandalwood oil
e. Matches
f. Photographic plates & films
g. Stainless steel & aluminium circles
h. Refined copper & copper alloys
9/7/2015 SSI units Exemption under central excise Excise Articles
http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp 4/10
i. Tractors, motor vehicles, cars, chassis, motorcycles & mopeds
j. Watches (except where retail sale price is ≤ ₹500 per piece)
k. Revolvers, pistols, firearms
l. Travel sets for personal toilet
m. Ceramic tiles other than those subjected to the process of printing, decorating
n. Power driven pumps for water not conforming Bureau of Indian Standards (BIS)
o. Products covered under compounded levy scheme
Declaration to be filed on reaching specified limit
a. SSI units whose turnover is more than specified limit (at present ₹90 lacs) but less than exemption limit (i.e.₹150 lacs) have to file a declaration in the prescribed form.
b. Such declaration has to be filed only once in the lifetime of the assessee (and not every year).
Registration
SSI units whose turnover is ≤ ₹150 lacs are exempted from registration. Once the exemption limit exceeds,the unit shall compulsorily get registered with the Central Excise authorities.
Due date for payment
a. Once the turnover exceeds the exemption limit, SSI units are liable to pay ED.
b. Due date for payment of duty is 5th of the following month from the end of relevant quarter (6th in case ofepayment) for clearances during AprFeb, and 31st March for clearances during Mar.
c. SSI units (whether claiming benefit of exemption or not) are liable to pay ED on quarterly basis. Further, thisrelaxation is available for the entire financial year even if the SSI unit crosses the limit of ₹400 lacs during thecurrent year.
Filing of return
9/7/2015 SSI units Exemption under central excise Excise Articles
http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp 5/10
Assessees are required to file quarterly return in ER3 on/before 10th of the following month from the end ofthe relevant quarter. For example, if the return pertains to I Qtr (AprJun), the due date for filing ER3 would be10th July.
Cenvat credit on capital goods
SSI units can claim cenvat credit on capital goods up to 100% in the year receipt of such goods (unlikeOtherthanSSI units who are allowed 50% credit during the year of receipt).
Job work
Job worker is exempt from basic excise duty if the supplier of raw material has undertaken payment of dutyu/n no.214/86 (otherwise, job worker being manufacturer is liable to pay ED).
Audit
Audit of SSI units is conducted once in 25 years:
i. Duty range between ₹10 – 100 lacs: Once in 2 years
ii. Duty range < ₹10 lacs: Once in 5 yrs
SSI units having more than one unit
Where the SSI unit has more than one unit or place of business, the turnover of ₹400 lacs shall be calculatedclubbing the turnover of all the units.
Goods manufactured under brand name of others
Where goods are manufactured under brand name of others, the inclusion of turnover under aggregateclearances limit and exemption limit are as follows:
9/7/2015 SSI units Exemption under central excise Excise Articles
http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp 6/10
However, the following transactions come under the purview of exemption limit even though these goods aremanufactured under brand name of others. Hence the following are included in the turnover of ₹ 400 lacs:
1. Components or parts of any machinery/equipment/appliances cleared for use as original equipment in themanufacture of said machinery/equipment
2. Goods bearing brand or trade name of Khadi & Village Industries Commission
3. Goods bearing brand name of State Khadi & Village Industry Board
4. Goods bearing brand name of National Small Industries Corporation
5. Goods bearing brand name of Small Scale Industries Development Corporation or State Small IndustriesCorporation
6. Goods manufactured in a factory located in rural area
7. Goods like account books, registers, writing pads, file folders falling under heading 4820 or 4821 of Ischedule of Central Excise Tariff Act, 1985, manufactured in a factory
8. Goods manufactured under the brand or trade name of others if these goods are in the nature of packingmaterials (viz. printed cartons of paper or paper board, metal containers, HDPE woven sacks, adhesive tapes,stickers, PP caps, crown corks, metal labels)
9/7/2015 SSI units Exemption under central excise Excise Articles
http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp 7/10
← Previous (check_next.asp?article_id=23104&mode=0)
Next → (check_next.asp?article_id=23104&mode=1)
9. Printed laminated rolls bearing brand name of others
10. Plastic bottles & plastic containers used as packing material
Transactions not regarded as manufacture under brand name of others:
a. Affixing brand on school/securityagency/company/hotel readymade garments is not branding ofreadymade garment and such garments are eligible for SSI exemption (Circular No.947/8/2011CX dated21/06/2011)
b. Brand name when exclusively assigned to others for use within a particular territorial unit – SSI exemptionavailable (Sadana Foods Vs CCE 2012 (284) ELT 257 (Tri – Bang)
Published in Excise (article_display_list_by_category.asp?cat_id=11) Views : 14481
u=http%3A%2F%2Fwww%2Ecaclubindia%2Ecom%2Farticles%2Fssi%2Dunits%2Dexemption%2Dunder%2Dcentral%2Dexcise%2D23104%2Easp%3Futm%5Fsource%3Darticles%26utm%5Fmedium%3Dsharestrip%26utm%5Fcampaign%3Dsocialshare)
url=http%3A%2F%2Fwww%2Ecaclubindia%2Ecom%2Farticles%2Fssi%2Dunits%2Dexemption%2Dunder%2Dcentral%2Dexcise%2D23104%2Easp%3Futm%5Fsource%3Darticles%26utm%5Fmedium%3Dsharestrip%26utm%5Fcampaign%3Dsocialshare&text=SSI
url=http%3A%2F%2Fwww%2Ecaclubindia%2Ecom%2Farticles%2Fssi%2Dunits%2Dexemption%2Dunder%2Dcentral%2Dexcise%2D23104%2Easp%3Futm%5Fsource%3Darticles%26utm%5Fmedium%3Dsharestrip%26utm%5Fcampaign%3Dsocialshare)
url=http%3A%2F%2Fwww%2Ecaclubindia%2Ecom%2Farticles%2Fssi%2Dunits%2Dexemption%2Dunder%2Dcentral%2Dexcise%2D23104%2Easp%3Futm%5Fsource%3Darticles%26utm%5Fmedium%3Dsharestrip%26utm%5Fcampaign%3Dsocialshare)
Recent Comments Total: 6
9/7/2015 SSI units Exemption under central excise Excise Articles
http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp 8/10
Related Articles
More » (article_display_list_by_category.asp?cat_id=11)
Other Latest Articles
Mistakes to be avoided while filing an ITR (/articles/mistakestobeavoidedwhilefilinganitr24953.asp)
Life of a Chartered Accountancy Student!! (/articles/lifeofacharteredaccountancystudent24955.asp)
Summary of Excise duty case laws applicable for CA Final Nov 15 (/articles/summaryofexcisedutycaselawsapplicableforcafinalnov1524954.asp)
Taxes to be subsumed in GST (/articles/taxestobesubsumedingst24951.asp)
Impact under GST on Job work transactions (/articles/impactundergstonjobworktransactions24947.asp)
I failed CA once. What next ? (/articles/ifailedcaoncewhatnext24938.asp)
Which is the best place to do CA articleship? (/articles/whichisthebestplacetodocaarticleship24946.asp)
Facing CA Exam Strategies for success (/articles/facingcaexamstrategiesforsuccess24945.asp)
1% Additional Levy: Where is it heading us? (/articles/1additionallevywhereisitheadingus24944.asp)
Black Money (Undisclosed Foreign Income and Assets ) and Imposition of Tax Act 2015
9/7/2015 SSI units Exemption under central excise Excise Articles
http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp 9/10
You may also like
(/articles/blackmoneyundisclosedforeignincomeandassetsandimpositionoftaxact201524943.asp)
More » (default.asp)
Search Articles
CCI ArticlesYou can also submit your article by sending to [email protected]
Submit article (article_list_add.asp)
GO
Featured Articles(articles_featured.asp)
Government pushing GST to meet April, 2016 deadline (/articles/governmentpushinggsttomeet
april2016deadline24932.asp)
Base of Indian company law (/articles/baseofindiancompanylaw24915.asp)
Top 10 tips for CA students Your attitude matters the most (/articles/top10tipsforcastudents
yourattitudemattersthemost24903.asp)
Tax Planning in Service Tax (/articles/taxplanninginservicetax24756.asp)
The Drag along and Tag along rights (/articles/thedragalongandtagalongrights24629.asp)
Requirement of Form 15CA & Form 15CB (/articles/requirementofform15caform15cb24080.asp)
Right to litigate must be replaced with right to justice (/articles/righttolitigatemustbereplacedwith
9/7/2015 SSI units Exemption under central excise Excise Articles
http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp 10/10
view more » (articles_featured.asp)
righttojustice24518.asp)
Browse by Category (article_category_stats.asp)
Recent Comments (recent_comments.asp)
Popular Articles (articles_popular.asp)
8 apps for CA students and articles trainees (/articles/8appsforcastudentsandarticlestrainees
24818.asp)
Improve Your English Grammar Quick Guide Part 2 (/articles/improveyourenglishgrammar
quickguidepart224828.asp)
Top 10 tips for CA students Your attitude matters the most (/articles/top10tipsforcastudents
yourattitudemattersthemost24903.asp)
CARO 2015 Reporting and Format (/articles/caro2015reportingandformat24723.asp)
Preparation Strategy for CA Final Law!! (/articles/preparationstrategyforcafinallaw24750.asp)
Can we really compare a CA with MBA? (/articles/canwereallycompareacawithmba24891.asp)
MVAT TDS on Work Contract (WCT TDS) (/articles/mvattdsonworkcontractwcttds24724.asp)
CAA Dream for Many but A Reality for Few (/articles/caadreamformanybutarealityforfew
24894.asp)
7 Things to know before joining CA Articleship (/articles/7thingstoknowbeforejoiningca
articleship24747.asp)
I failed CA once. What next ? (/articles/ifailedcaoncewhatnext24938.asp)
Popular Most Commented