SSI – Excise Registration
1)Definitions: associate industrial endeavor within which the investment on fastened Assets in plant and machinerywhether or not remained possession or terms on lease or on rent purchase doesn't exceed Rs ten million as per littleScale Industries Act. As per Central Excise Act SSI Unit means that a unit whose turnover is a smaller amount than fourcrores (Rs three Crores upto 2004-05) within the last twelvemonth. underneath Central Excise Act 1944 the govt. . has given varied concessions to SSI units to encourage their growth. SSI units whose turnover was but Rs. four coroes in 2006-07 square measure eligible for the concessions, if the units doesn't avail Cenvat Credit on inputs, turnover upto Rs.one hundred fifty lacs (Rs one hundred lacs upto 2006.07) is absolutely exempt. If SSI unit avails Cenvat Credit on inputs, it's to pay traditional duty on all clearances and no SSI exemption is out there. in line with the definition of Central Excise all industries square measure eligible for concession no matter their investment or numbers of workers or size of the trade or unregistered underneath SSI Act. Any trade is eligible for this concession if its annual turnover is a smaller amount than four crores.
Choice of Exemption:it's the selection of the SSI unit which sort of exemption it'll avail which possibility should learnto the Department: 1st Option: Avail full exemption upto one hundred fifty lacs and pay traditional duty thenceforth. Such units will avail Cenvat credit on inputs when reaching turnover one hundred fifty animal product in this explicittwelvemonth. Second Option: SSI unit may also pay duty on 100 percent despatch and avail full Cenvat Credit on inputs.alternative conditions:
(A)If any SSI unit having various products either he has to avail Cenvat credit for all products or opt for exemption. It is not permissible to avail Cenvat credit for some products and avail exemption for other products.
(B)If a manufacturer has more that one factory, he has to avail any one option in respect of all factories. He cannot opt to avail Cenvat Credit in respect of one factory and avail SSI exemption for other factory.
(C)Exception is only permissible in case of export. If the final product is exported, the SSI unit can avail Cenvat Credit in respect of inputs used for final product, which is exported.
(D) Cenvat Credit is to be reversed if any SSI unit decides to opt for exemption in mid of any fiancial year. In this situation the unit has to pay an amount equivalent to Cenvat Credit allowed him on the inputs lying in stock (whether in form of Raw Martial or Work-in- process or Finished Goods) and if any Cenvat Credit on inputs is balance in RG 23A Part-II, it will be lapsed.
(E)If any SSI unit decides to avail and utilize Cenvat Credit in middle of the financial year it is entitled to avail Cenvat Credit on the closing Stock on inputs (whether in form of Raw Martial or Work-in- process or Finished Goods) on the date of declaration. In this situation turnover is to be considered from 1st April of that financial year