Minister of State for Finance, Mr. S.S. Palanimanickam, has informed that pharma units are eligible for general small-scale industries excise duty exemption scheme.

He said this in reply to a question raised by Mrs. Botcha Jhansi Lakshmi in Lok Sabha.

As such, units having clearance value up to Rs 4 crore in the preceding financial year are eligible for full excise duty exemption on their first clearances up to Rs 1.5 crore in a financial year, subject to certain conditions.

In the States of Uttarakhand & Himachal Pradesh, new units or units undertaking substantial expansion are fully exempt from excise duty, while such units in the North East, Jammu & Kashmir and Kutch are entitled for refund of duty paid in cash.

Government had received requests for increasing eligibility limit under SSI exemption Scheme for pharma units and enhancing the exemption limit. Government had also received requests for reducing the normal rate of excise duty from 16% to 8 to 4% on pharmaceutical products including drugs.

In the budget 2008-09, the issue of excise duty on pharma products was examined and excise duty on pharmaceutical products including drugs has been reduced from 16% to 8%. The tax-exemption under small scale exemption scheme was also examined and it was decided not to make any change for the present.

Mr. Neeraj Sharma

Neeraj Electronics

CEO, Neeraj Electronics
Jorhat, India

Free Member, Joined :06/09/2007
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