9/7/2015

SSIunitsExemptionundercentralexciseExciseArticles

Home(/) / Articles(default.asp) / Excise(article_display_list_by_category.asp?cat_id=11)

/ SSIunitsExemptionundercentralexcise

SSIunitsExemptionundercentralexcise
PoornimaMadhava(../profile.asp?member_id=198435)
on24February2015

(../profile.asp?
member_id=198435)

(../report_abuse.asp?module=articles)

SSIunits&Notificationno.8/2003CE
a.SSIstandsforSmallScaleIndustries.Notificationno.8/2003providesrelaxationtoSSIunitsfromcentral
excisedutysubjecttocertainconditions.
b.Thus,amanufacturerbeinganSSIunitiseligibleforexemptionfromexcisedutyuptoaturnoverof150
lacs (exemption limit) during the current year provided the turnover (aggregate clearances) in the previous
yeardoesnotexceed400lacs.Toreiterate,theexemptionbenefitwouldbeavailableeveniftheturnover
inthepreviousyearisequalto400lacs.
c.Manufacturerscanmakeuseoftheexemptionintheoneofthefollowingmanners:
i.Claimexemptionuptoaturnoverof150lacs,payexciseduty(ED)overthislimitandavailcenvatcredit
(CC)oninputsoncethelimitexceeds.
ii.Withoutseekingexemption,payfulldutyandclaimcenvatcreditoninputsfromthebeginning.

http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp

1/10

9/7/2015

SSIunitsExemptionundercentralexciseExciseArticles

Howisturnover/aggregateclearancesof400lacsforpreviousyeardetermined?
Typicalformatforcomputation:
Particulars

Goodsclearedwithpaymentofexciseduty

ADD(ifnotincludedintheabove):

Exemptedturnover(otherthanSSIorJobworknotification)*

Goodsmanufacturedinruralareawithbrandnameofothers

http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp

2/10

9/7/2015

SSIunitsExemptionundercentralexciseExciseArticles

ExporttoNepalandBhutan

Captiveconsumption(iffinalproductisexempt)

LESS(ifincludedintheabove):

Exportturnover

ClearancestoEOU/SEZ/EHTP/STP/UN**

Nonexcisablegoods

Goodsmanufacturedwithbrandnameofothersonpaymentofduty

Jobworku/nno.214/86,83/94,84/94etc

ExportunderbondthroughMerchantExporter

BALANCE:TURNOVER/AGGREGATECLEARANCES()

*SSInotificationno.8/2003,Jobworknotificationno.214/86,83/94,84/94etc
**EOU:100%ExportOrientedUnitSEZ:SpecialEconomicZoneEHTP:ElectronicHardwareTechnology
ParkSTP:SoftwareTechnologyParkUN:UnitedNations
SpecificexclusionfromSSIexemption

SSIexemptionisnotapplicabletothemanufacturersofthefollowingproducts:
a.Tea/Coffee
b.Icecream
c.Panmasala/Unbrandedchewingtobacco
d.Sandalwoodoil
e.Matches
f.Photographicplates&films
g.Stainlesssteel&aluminiumcircles
h.Refinedcopper&copperalloys

http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp

3/10

9/7/2015

SSIunitsExemptionundercentralexciseExciseArticles

i.Tractors,motorvehicles,cars,chassis,motorcycles&mopeds
j.Watches(exceptwhereretailsalepriceis500perpiece)
k.Revolvers,pistols,firearms
l.Travelsetsforpersonaltoilet
m.Ceramictilesotherthanthosesubjectedtotheprocessofprinting,decorating
n.PowerdrivenpumpsforwaternotconformingBureauofIndianStandards(BIS)
o.Productscoveredundercompoundedlevyscheme
Declarationtobefiledonreachingspecifiedlimit
a.SSIunitswhoseturnoverismorethanspecifiedlimit(atpresent90lacs)butlessthanexemptionlimit(i.e.
150lacs)havetofileadeclarationintheprescribedform.
b.Suchdeclarationhastobefiledonlyonceinthelifetimeoftheassessee(andnoteveryyear).
Registration
SSI units whose turnover is 150 lacs are exempted from registration. Once the exemption limit exceeds,
theunitshallcompulsorilygetregisteredwiththeCentralExciseauthorities.
Duedateforpayment
a.Oncetheturnoverexceedstheexemptionlimit,SSIunitsareliabletopayED.
b.Duedateforpaymentofdutyis5thofthefollowingmonthfromtheendofrelevantquarter(6thincaseof
epayment)forclearancesduringAprFeb,and31stMarchforclearancesduringMar.
c.SSIunits(whetherclaimingbenefitofexemptionornot)areliabletopayEDonquarterlybasis.Further,this
relaxationisavailablefortheentirefinancialyeareveniftheSSIunitcrossesthelimitof400lacsduringthe
currentyear.
Filingofreturn

http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp

4/10

9/7/2015

SSIunitsExemptionundercentralexciseExciseArticles

AssesseesarerequiredtofilequarterlyreturninER3on/before10thofthefollowingmonthfromtheendof
therelevantquarter.Forexample,ifthereturnpertainstoIQtr(AprJun),theduedateforfilingER3wouldbe
10thJuly.
Cenvatcreditoncapitalgoods
SSIunitscanclaimcenvat credit on capital goods up to 100% in the year receipt of such goods (unlike
OtherthanSSIunitswhoareallowed50%creditduringtheyearofreceipt).
Jobwork
Jobworkerisexemptfrombasicexcisedutyifthesupplierofrawmaterialhasundertakenpaymentofduty
u/nno.214/86(otherwise,jobworkerbeingmanufacturerisliabletopayED).
Audit
AuditofSSIunitsisconductedoncein25years:
i.Dutyrangebetween10100lacs:Oncein2years
ii.Dutyrange<10lacs:Oncein5yrs
SSIunitshavingmorethanoneunit
WheretheSSIunithasmorethanoneunitorplaceofbusiness,theturnoverof400lacsshallbecalculated
clubbingtheturnoverofalltheunits.
Goodsmanufacturedunderbrandnameofothers
Where goods are manufactured under brand name of others, the inclusion of turnover under aggregate
clearanceslimitandexemptionlimitareasfollows:

http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp

5/10

9/7/2015

SSIunitsExemptionundercentralexciseExciseArticles

However,thefollowingtransactionscomeunderthepurviewofexemptionlimiteventhoughthesegoodsare
manufacturedunderbrandnameofothers.Hencethefollowingareincludedintheturnoverof400lacs:
1.Componentsorpartsofanymachinery/equipment/appliancesclearedforuseasoriginalequipmentinthe
manufactureofsaidmachinery/equipment
2.GoodsbearingbrandortradenameofKhadi&VillageIndustriesCommission
3.GoodsbearingbrandnameofStateKhadi&VillageIndustryBoard
4.GoodsbearingbrandnameofNationalSmallIndustriesCorporation
5. Goods bearing brand name of Small Scale Industries Development Corporation or State Small Industries
Corporation
6.Goodsmanufacturedinafactorylocatedinruralarea
7. Goods like account books, registers, writing pads, file folders falling under heading 4820 or 4821 of I
scheduleofCentralExciseTariffAct,1985,manufacturedinafactory
8.Goodsmanufacturedunderthebrandortradenameofothersifthesegoodsareinthenatureofpacking
materials(viz.printedcartonsofpaperorpaperboard,metalcontainers,HDPEwovensacks,adhesivetapes,
stickers,PPcaps,crowncorks,metallabels)

http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp

6/10

9/7/2015

SSIunitsExemptionundercentralexciseExciseArticles

9.Printedlaminatedrollsbearingbrandnameofothers
10.Plasticbottles&plasticcontainersusedaspackingmaterial
Transactionsnotregardedasmanufactureunderbrandnameofothers:
a. Affixing brand on school/securityagency/company/hotel readymade garments is not branding of
readymade garment and such garments are eligible for SSI exemption (Circular No.947/8/2011CX dated
21/06/2011)
b.BrandnamewhenexclusivelyassignedtoothersforusewithinaparticularterritorialunitSSIexemption
available(SadanaFoodsVsCCE2012(284)ELT257(TriBang)

PublishedinExcise(article_display_list_by_category.asp?cat_id=11)
Views:14481

Futm%5Fsource%3Darticles%26utm%5Fmedium%3Dsharestrip%26utm%5Fcampaign%3Dsocialshare)

3Futm%5Fsource%3Darticles%26utm%5Fmedium%3Dsharestrip%26utm%5Fcampaign%3Dsocialshare&text=SSI

3Futm%5Fsource%3Darticles%26utm%5Fmedium%3Dsharestrip%26utm%5Fcampaign%3Dsocialshare)

3Futm%5Fsource%3Darticles%26utm%5Fmedium%3Dsharestrip%26utm%5Fcampaign%3Dsocialshare)

Previous(check_next.asp?article_id=23104&mode=0)
Next(check_next.asp?article_id=23104&mode=1)

RecentComments

Total:6

http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp

7/10

9/7/2015

SSIunitsExemptionundercentralexciseExciseArticles

RelatedArticles

More(article_display_list_by_category.asp?cat_id=11)

OtherLatestArticles
MistakestobeavoidedwhilefilinganITR(/articles/mistakestobeavoidedwhilefilinganitr
24953.asp)
LifeofaCharteredAccountancyStudent!!(/articles/lifeofacharteredaccountancystudent
24955.asp)
SummaryofExcisedutycaselawsapplicableforCAFinalNov15(/articles/summaryofexcise
dutycaselawsapplicableforcafinalnov1524954.asp)
TaxestobesubsumedinGST(/articles/taxestobesubsumedingst24951.asp)
ImpactunderGSTonJobworktransactions(/articles/impactundergstonjobworktransactions
24947.asp)
IfailedCAonce.Whatnext?(/articles/ifailedcaoncewhatnext24938.asp)
WhichisthebestplacetodoCAarticleship?(/articles/whichisthebestplacetodocaarticleship
24946.asp)
FacingCAExamStrategiesforsuccess(/articles/facingcaexamstrategiesforsuccess
24945.asp)
1%AdditionalLevy:Whereisitheadingus?(/articles/1additionallevywhereisitheadingus
24944.asp)
BlackMoney(UndisclosedForeignIncomeandAssets)andImpositionofTaxAct2015

http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp

8/10

9/7/2015

SSIunitsExemptionundercentralexciseExciseArticles

(/articles/blackmoneyundisclosedforeignincomeandassetsandimpositionoftaxact2015
24943.asp)
More(default.asp)

Youmayalsolike

CCIArticles
Youcanalsosubmityourarticlebysendingtoarticle@caclubindia.com
Submitarticle(article_list_add.asp)

SearchArticles

GO

FeaturedArticles
(articles_featured.asp)
GovernmentpushingGSTtomeetApril,2016deadline(/articles/governmentpushinggsttomeet
april2016deadline24932.asp)
BaseofIndiancompanylaw(/articles/baseofindiancompanylaw24915.asp)
Top10tipsforCAstudentsYourattitudemattersthemost(/articles/top10tipsforcastudents
yourattitudemattersthemost24903.asp)
TaxPlanninginServiceTax(/articles/taxplanninginservicetax24756.asp)
TheDragalongandTagalongrights(/articles/thedragalongandtagalongrights24629.asp)
RequirementofForm15CA&Form15CB(/articles/requirementofform15caform15cb24080.asp)
Righttolitigatemustbereplacedwithrighttojustice(/articles/righttolitigatemustbereplacedwith

http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp

9/10

9/7/2015

SSIunitsExemptionundercentralexciseExciseArticles

righttojustice24518.asp)
viewmore(articles_featured.asp)

BrowsebyCategory(article_category_stats.asp)

RecentComments(recent_comments.asp)

PopularArticles(articles_popular.asp)

Popular

MostCommented

8appsforCAstudentsandarticlestrainees(/articles/8appsforcastudentsandarticlestrainees
24818.asp)
ImproveYourEnglishGrammarQuickGuidePart2(/articles/improveyourenglishgrammar
quickguidepart224828.asp)
Top10tipsforCAstudentsYourattitudemattersthemost(/articles/top10tipsforcastudents
yourattitudemattersthemost24903.asp)
CARO2015ReportingandFormat(/articles/caro2015reportingandformat24723.asp)
PreparationStrategyforCAFinalLaw!!(/articles/preparationstrategyforcafinallaw24750.asp)
CanwereallycompareaCAwithMBA?(/articles/canwereallycompareacawithmba24891.asp)
MVATTDSonWorkContract(WCTTDS)(/articles/mvattdsonworkcontractwcttds24724.asp)
CAADreamforManybutARealityforFew(/articles/caadreamformanybutarealityforfew
24894.asp)
7ThingstoknowbeforejoiningCAArticleship(/articles/7thingstoknowbeforejoiningca
articleship24747.asp)
IfailedCAonce.Whatnext?(/articles/ifailedcaoncewhatnext24938.asp)

http://www.caclubindia.com/articles/ssiunitsexemptionundercentralexcise23104.asp

10/10