Small stainless steel cos to pay Rs 10k additional excise duty

The additional burden comes with Chidambaram proposing hike in excise duty on "Patta Patti" to Rs 40,000 per month from Rs 30,000 earlier in the Budget for 2013-14

Small and marginal producers of stainless steel, belonging mostly to unorganised sector, will have to pay an additional Rs 10,000 excise duty for each and every machine per month from now.

The additional burden comes with the Finance Minister P Chidambaram proposing to hike excise duty on stainless steel "Patta Patti" to Rs 40,000 per month from Rs 30,000 earlier in the Budget for 2013-14.

Small and marginal firms produce over one million tonnes of stainless steel out of the country's total production of three million tonnes in a year.

An industry expert said these firms, thousands in number, are based out of city suburbs and allegedly do not pay taxes in proportion to their production to the government.

Stainless steel finds use in industrial, infrastructure, transportation, home, architectural and construction sectors.

Meanwhile, Chidambaram has reduced the basic customs duty on stainless steel wire cloth stripe from 10% to five% and from 7.5% to 5% on wash coat for use in the manufacture of catalytic converters and their parts.