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BSSIA/PRESS/296/2005-2006 Date: 11-03-2006
Dear Special Slaves of India,
It is my privilege to present you the details of Union Budget 2006-2007 presented by Union Finance Minister Shri P. Chidambram on
February 28th 2006.
1) The Manufacturing of Ice-Creams (21050000) is no more reserved item under SSI, so also the condensed Milk (04029110),
preparation of Meat (Chapter 16) Fish (Chapter 16), Poultry (Chapter 16) Pectin’s (35079040) Pasta (190200) & Yeast (210200) are
provided exemption to Nil rate duty. All these Manufacturers of these products will not get CENVAT on the Inputs they were using for
Packing Printing and Dutiable Products. Prices of these “Excisable goods” will go up as being produced and marketed by Large Houses
and Multinational Companies.
2) Ready to eat packaged foods, instant food mixes like Dosa & Idli will not be cheaper by reducing the duty from 16% to
8% as the Cost of Inputs have gone up.
3) Leather Footwear above Rs. 250 and upto Rs. 750 of RSP (Retail Sale Price) will attract 8% & above Rs. 751 will attract
16% duty of excise and VAT @ 12.5% CENVAT Credit available. This will not help the SSI Units.
4) All kind of LPG Stoves will attract 8% excise duty The Manufacturers will be eligible for CENVAT Credit on Inputs.
The cost will not go down.
5) All the Glassware (Chapter 70) Ceramic Ware (Chapter 69) will attract 16%. CENVAT Credit admissible. They all can
avail the Job-Work Notification 214/86-C.E. dated 25-3-1986, 83/94-C.E. & 84/94-C.E. both dated 11-4-1994.
6) Many products required various processes to complete the products are permitted to get the Job-Work done under Notification
214/86-C.E. 83/94-C.E. & 84/94-C.E. as amended.
All the Principal Manufacturers have to follow the procedures prescribed in these Notifications. i.e. and intimation to Assistant
Deputy / Commissioner in writing as per the Provisions. The format is available with Association. Can be downloaded from our
Website.
(www.bssia.org)
7) Each and every Units, whose Clearances of Excisable Goods for Home Consumption have exceeded Rs. 40 Lakh during the preceding
financial year or likely to exceed during the present year, should file the declaration on the prescribed format to Divisional,
Asstt. / Deputy Commissioner. The Format is available with the Association. Can be down Loaded from our Website.
8) Computers will attract 12% excise duty. CENVAT Credit available on Inputs. The Prices may go down by about 3%.
9) Duty of specified Paper Products have been reduced to 12% from 16%.
10) The aerated Water, Mineral Water unbranded will also attract 16%/. The Sale price will go up.
11) 186 items from the Reservation List announced on 1st August, 1984 for SSI Sector have been de-reserved. The list will be available
at later stage. No effect on SSI.
12) The Branded Goods Produced by Unit for other person will continue to attract the Excise duty at prevailing rate.
13) The Exemption upto Rupees One Crore will continue to 120 Lakhs SSI Units, whether registered as SSI with the States Government or
un-registered. Only about 16 Lakh Units are registered as per SIDO Survey.
14) All the Traders, are covered under Central Excise, who carryout any activities, which render the ‘goods’ marketable, including
generation of Waste & Scraps for Re-use. Under Central Excise Act, 1944 (1 of 1944). They are treated as Factory under the Central
Excise Act 1944.
15) Countervailing Duty of 4% will be applicable on all the Imports with few exceptions. Manufacturers will be allowed to take Full
Credit of this CVD. However it will not be available to Traders for Value Added Tax (VAT).
16) Various products being produced by SSI, which were attracting 8% duty will be attracting 16% like Tooth Brushes, Goggles etc.
Units are allowed to take CENVAT Credit.
17) Many Services have been brought under Service Tax, imposed under Finance Act, 1994 Section 64.
18) Rate of Service Tax has been enhanced from 10% to 12%.
The Advocates and Medical professionals are not covered under Service Tax as they are not accountable. They do not accept the Fee by
Cheques. They distribute & buy their needs in Cash. They settle their issue in Cash. They do not maintain any ledger or Books of
Accounts. They are not Slaves like us.
19 I have addressed all of you as Special Slaves of India, because we are accountable to 65 Various Inspectors of 42 departments.
We accountable to our employees & Union Leaders.
20. We need our accounts audited by external Chartered Accountants, who collects the Fee & also the Service Tax from US. They are also
not accountable, but we are.
21. The Politicians like Mr. P. Chidambram draw the Power from unknown Sources imposed by the British Regime Prior to 1930 to carry on
Extortion from the poorest of the poor of this nation without providing any Service or assistance.
They all act like GOD and some time they over rule Power the GOD. They all treat us Special Slaves of India, because we do not have
any Leader, who is ready to sacrifice for our betterment. We also do not Trust our Leaders & feel that Money can bring Liberty &
Freedom.
Yours truly,
For Bombay Small Scale Industries Association
RAKSHPAL ABROL
President,
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