er1 or er3, Central Excise

[manoj raut]

Dear sir,

 regular unit

ssi unit

what is difference both.

Posts / Replies

[Surender Gupta]

In central excise, SSI units are units who are availing or eligible for availing SSI exemption upto 1.5 crores and turnover of such unit in the previous year does not exceed Rs. 4 crores. - required to file return in ER-3 format

All other units are regular units - required to file return in ER-1 format.

[raj kumar shukla]

Well  explained. However, 1.5 crore limit is for specified commodities listed in annexure to  notification, no. 8/2003.

[Naveed S]

SMALL SCALE INDUSTRIES (SSI) - Basics

Vide notification no.08/2003 dated 01/03/2003 as amended, the govt. has given various concessions to small scale industries (SSI). All industries (even large scale unit) irrespective of their investment or no. of employees are eligible for concession only if their turnover in previous year was less than Rs. 4 crores.

Example:Units whose turnover was over Rs. 4 crores in 2011-12 are not eligible to any SSI concession in 2012-13, they have to pay full normal duty from 1^stApril, 2012 and if turnover is less than Rs. 4 crores in 2011-12 such units are eligible for SSI exemption upto Rs. 150 lakhs in 2012-13.

However SSI units have the following options of exemptions: -

(a) A manufacturer can avail full exemption upto Rs. 150 lakhs and pay normal duty thereafter and can avail Cenvat credit on inputs after crossing exemption limit of turnover of Rs. 150 lakhs in the financial year, or

(b) A manufacturer has the option not to avail the exemption and instead pay the normal rate of duty and avail Cenvat credit.

Option (b) is available any time during the year, but this option once availed cannot be withdrawn during the financial year.

Besides excise duty concessions, other concessions to SSI units are as follows:-

I. Procedural Concessions: - Units availing SSI exemptions have to submit a quarterly ER-3 return, by 10^th of following month instead of monthly return and have to pay duty by 5^th of following month (except for the month of march in which duty is payable by end of the month).

Exceptions:-

1. This relaxation is not available to the manufacturer producing goods with other's brand name. But if manufacturer partly manufactures goods with other's brand name and also avails SSI exemption in respect of remaining goods, he can avail this facility.

2. If SSI unit pays normal duty without availing SSI concession, it will have to file monthly return and pay duty on monthly basis by 5^th of the March.

[SUNIL & KALPANA SINGH TOMAR]

We are paying excise duty  from Rs. 1/- on our Branded Manufactured goods  and  also availing the SSI exemptions on our Un Branded Manufactured goods (up to 1.5cr) . And we are filing  return ER-1 every month with both manufacturing details  . We are not taking any Cenvat Credit .

Please guide us that we have  file seprately return ER1 (for Branded goods or  duty paid) &   ER-3 ( for Unbranded or in ssi exm) .

Thanks & Regards

Kalpana 

 

[Radha Arun]

Single return in ER3 format will suffice. Rule 12 of Central Excise Rule, 2002 provides that an assessee whose turnover was less than Rs 4 crores in the previous financial year will file quarterly returns.   

[SUNIL & KALPANA SINGH TOMAR]

we understand with your reply that we file quaterly return ER-3 for SSI Exemption (i.e.unbranded Goods) and  also continue filing ER 1 for Branded Goods .

If we are wrong so pls correct ,if possible.

Kalpana

[Radha Arun]

Dear Kalpana, 

You have to file only ER-3 return.

Regards

Radha Arun

[SUNIL & KALPANA SINGH TOMAR]

Dear Sir,

Just wanted to get confirm that do we need to file ER-3 only quaterly return for unbranded goods which is falling under SSI exemptions  and also need to file the ER-1 monthly return for dutable goods?

Thanks for attending my issue and oblige for your eartly respnose.

Thanks & Regards,

Kalpana

[Radha Arun]

Dear Kalpana,

You have to file only a single ER-3  return, which will include branded as well as unbranded goods.

Regards

Radha Arun

[SUNIL & KALPANA SINGH TOMAR]

Thanks a lot  sir

[SUNIL & KALPANA SINGH TOMAR]

Dear Radha Arun Sir,

One of my relative (mr.akhil singh tomar HUF a/c) receiving the commercial rent as per following manner:

Year                                                    Total Retal Income

2010-11  -----------------------------     Rs. 7,50,000=00   (NO S.TAX LIBILITY IMPOSED under exemption 8 LAC)

2011-12 -----------------------------       Rs. 13,57,500=00   ( Service Tax @10.3% Due of   Rs. 557000/- after exeption Deduction)                                                                                                                                                          

2012-2013 ------------------------    Rs. 24,00,000=00  (Service Tax @12.36% Due from April2012)

We request you  kindly direct us  on the following issues

* Can  we avail the exemption of Rs.8/-lac for the year 2011-12  or  What value should be considered for the valuation of  Service Tax  for the year 2011-12 ?

*How much Service Tax should be paid for the year 2012-13, when we are receiving the rent   Rs. 200000/- Per month (In same A/C Akhil Singh Tomar HUF A/C)?

*Are we required to deduct the value of Rs. 800000/- from the total rental value for depositing the service tax?

We would we very obliged for your response in this regard.

Thanks

Kalpana Singh      

 

[karthikeyan krishnan]

In central excise, SSI units are units who are availing or eligible for availing SSI exemption upto 1.5 crores and turnover of such unit in the previous year does not exceed ₹ 4 crores. - Please required to file return in ER-3 format...

With Regards

KARTHIKEYAN