No. 4(1)/93-SSI-Bd.

GOVERNMENT OF INDIA
MINISTRY OF INDUSTRY

DEPTT. OF SMALL SCALE INDUSTRIES AND ARGO & RURAL INDUSTRIES
OFFICE OF THE DEVELOPMENT COMMISSIONER
SMALL SCALE INDUSTRIES
Nirman Bhavan, New Delhi,
Dated, the 27th August, 1993

To

  1. The Secretary(Industries) () All States/UTs
  2. Director of Industries ()

Subject: - Computation of original value of second-hand imported machinery.

Ref.: - Gazette Notification No. S.O. 2 (E) dated 1.1.1993 regarding equity participation and computation of value of plant / machinery.

Sir,

    Reference is invited to the above mentioned notification wherein guidelines have been provided in respect of computation of value of plant & machinery for determining the status of SSI/ Ancillary Industrial Undertakings. Among other things, the notification states that the value of plant and machinery, whether new or second-hand shall be computed on the basis of original price/value.

  1. References have been received in this office seeking clarification as to how to determine the price of second hand imported machinery. This issue has been examined in this office and the following decisions have been taken:-
    To determine the original price of second-hand imported machinery, the original value of the said plant and machinery will be taken in foreign currency terms.
    The value of foreign currency will be converted into rupees using the "current" exchange rate, i.e., exchange rate prevalent at the time of import.
    The import duty will be added on the basis of "current" rate of import duty, i.e. the rate of import duty prevalent at the time of import.

  2. Other conditions will remain the same as in the Gazette Notification dated 1.1.1993.

  3. This procedure may please be followed uniformly in all cases of import of second-hand machinery for the purposes of computing the value of plant & machinery for determining the small scale status of the unit.

Yours faithfully,

Sd/-
(Raju Sharma)
Director (SSI Bd.)