Small Scale Industry (SSI)

★Meaning of SSI is not defined in the Central Excise Act. The meaning can be understood as per Notification No. 8/2003

Where the Turnover in the previous year of a unit is not more then Rs. 4 crore (Rs. 400 lakhs) that unit is known as Small Scale Industry (SSI)

★EXEMPTION/CONCESSION:

Duty applicable on amount exceeding Rs.150 lakhs turnover.
Also no Cenvat Credit can be availed.

★OTHER APPLICABILITIES:

●If the turnover in the Current Year exceeds Rs. 90 lakhs, intimation has to given to the officer in the Next Year.

Note:
This is required to be done every next year of the current year in which such turnover is exceeded.

●If the turnover exceeds Rs. 140 lakhs, the unit need to register itself in such scheme.

●If the turnover exceeds Rs. 400 lakhs, the unit cannot avail exemption of Rs. 150 lakhs in the next year.

★OTHER CONCESSIONS:

●Return filing - Quaterly
●Payment of duty - Monthly instead of Quaterly (except for March)
●100% Cenvat Credit availability on capital goods in the first year
●Audit once in 2 to 5 years
●Exemption of duty if goods manufactured under brand name of others in rural area

Categories: Entrepreneurs, Taxation