In every tax, exemption is made to small businesses

In excise also, certain exemption is available to small manufacturers who are generally called SSI (Small Scale Industries)

This is done by Central Government by issue of Notification 8/2003 dt 1.3.2003

 

Meaning of SSI

These are those units whose aggregate value of clearances for home consumption does not exceed 400 lacs in the previous financial year

(Aggregate value of clearances for home consumption means

Domestic sales +

Export sales to Nepal and Bhutan)

In case a manufacturer has more than one factories, the combined turnover of all factories to be taken for calculation of SSI Limit

(As per Notification 8/2003 dt 1.3.2003)

 

 

 

How to Check 400 Lacs Limit?

All Domestic Sales

+

All Sales to Nepal Bhutan

+

All Exempted Sales

Except

Clearances to EOU/FTZ.SEZ/EHTP/STP/UNO/International Organizationa

Goods Sent for Job work

Goods bearing Brand Name/Trade Name of others

Intermediate Goods (Goods Consumed in Production)

 

Note:-Goods Exempt under Any Notifications not covered)

 

 

  1. Indirect Tax
  2. Excise
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides GST Training in Delhi. Register now.