NEW DELHI, June 27: The Union government has notified the alternative scheme for small scale units for availing Modvat benefits at concessional rates.

According to an official press note issued on Friday, the small scale units availing Modvat benefit would be required to pay excise duty calculated at 60 per cent of the normal duty on clearances upto Rs 50 lakh in a financial year.

It has also been stipulated that for the next set of clearances worth Rs 50 lakh, the small scale units would have to pay excise duty calculated at 80 per cent of the normal duty. On clearances beyond Rs 1 crore, the small scale unit would have to pay duty at the normal rate.

As far as the current year is concerned, the press note says any small scale unit could avail of the alternative scheme notified by the government. However, the clearances effected by the small scale units till the date of exercising option would be included for calculating the limit of Rs 50 lakh .

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.