Madurai units seek raise in excise limit to Rs 5 cr for MSMEs
Updated: Nov 19, 2013 03:03:45pm
Madurai, Nov 19 (KNN) The Madurai District Tiny and Small Industries Association (MADITSSIA) has recommended to the Finance Ministry to increase the Central Excise Tax exemption limit for micro, small and medium enterprises from the existing Rs 1.5 crore to Rs 5 crore.
“Seven years ago, the then Finance Minister Pranab Mukherjee stipulated Rs 1.5 crore as Central Excise Tax exemption limit for MSMEs in his budget. However, during those days raw material price was Rs 15-16 per unit which has now increased to Rs 45-50 per unit. Further, all production costs have become at least three times higher. Therefore, with such an increase the central excise tax exemption limit should also increase to Rs 5 crore,” MADITSSIA President, V S Manimaram said.
“We are making the recommendations but with elections round the corner, only the new government will have to take this forward,” he added.
The recommendations were made to the Joint Commissioner of Customs, Central Excise and Service Tax at an awareness programme jointly organised by the Excise Department and MADITSSIA on yesterday.
The association will be writing a letter in this regard to the Finance Ministry for consideration.
The awareness campaign was about making good use of the Service Tax Voluntary Compliance Encouragement Scheme (VCES) 2013, which enables payment of service tax dues from October 1, 2007 to December 31, 2012 without interest, penalty and legal proceedings, including prosecution.
The VCES was introduced on May-10 this year through an amendment to the Finance Act to encourage those liable to pay service tax to disclose their liability voluntarily. (KNN/SD)
“Seven years ago, the then Finance Minister Pranab Mukherjee stipulated Rs 1.5 crore as Central Excise Tax exemption limit for MSMEs in his budget. However, during those days raw material price was Rs 15-16 per unit which has now increased to Rs 45-50 per unit. Further, all production costs have become at least three times higher. Therefore, with such an increase the central excise tax exemption limit should also increase to Rs 5 crore,” MADITSSIA President, V S Manimaram said.
“We are making the recommendations but with elections round the corner, only the new government will have to take this forward,” he added.
The recommendations were made to the Joint Commissioner of Customs, Central Excise and Service Tax at an awareness programme jointly organised by the Excise Department and MADITSSIA on yesterday.
The association will be writing a letter in this regard to the Finance Ministry for consideration.
The awareness campaign was about making good use of the Service Tax Voluntary Compliance Encouragement Scheme (VCES) 2013, which enables payment of service tax dues from October 1, 2007 to December 31, 2012 without interest, penalty and legal proceedings, including prosecution.
The VCES was introduced on May-10 this year through an amendment to the Finance Act to encourage those liable to pay service tax to disclose their liability voluntarily. (KNN/SD)
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