Investment limit for plant & machinery in ssi
Vipul Adhvaryu
(Querist) 12 August 2013
This query is : Resolved
Dear Expert,
We have two seperate manufacturing Units, having seperate Excise Registration, but common Company Name, Common VAT No. & Common Balance Sheet (Though seperate accounts are maintained).
SSI Rules provide that Investment in Plant Machinery should be below 5 Crores for eligibility of Small Scale Unit.
Question : Will the investment of both units be combined to decide if it is SSI unit. ?
Shall appreciate your positive feedback.
Best Regards,
Vipul Adhvaryu.
Manager - Commercial
ASHU GROUP.
malipeddi jaggarao
(Expert) 13 August 2013
Company is one and the same though it has two manufacturing units. You have to club the purchase value of plant and machinery of both the units for determining the SSI status. As per the MSME definition your activity has to be treated as Medium. While computing the quantum, the original investment is to be taken into account excluding the cost of pollution control, research and development, industrial safety devices, and such other items as may be specified, by notification of RBI.
What is the definition of MSME?
A.1. The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under:
(a) Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below:
(i) A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh;
(ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and
(iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore.
In case of the above enterprises, in
