How to create custom permissions for sub sites in Foundation

In SharePoint foundation I came across a new feature or I should say a variation from the earlier versions of the  SharePoint. So below is the description -

I created a new Site collection. Then I created a few subsite. Now the requirement was this - I had to create a few custom permission level for the subsite- lets say "subs".

Now the problem begins , i tried to navigate to the site permissions, then permission level and the boom - no where to find add permission level. Then i tried to find it on other sub sites. No luck. Finally i went back to the site collection. And yes , there it is- "Add Permission Level".

What i came to know from some R&D that , even if we create a new sub site with unique permissions, the site inherits the permission levels. What benefit we achieved from this - yes a great one !! a custom permission levels are at one place. We dont have to hunt all the 100s of subsites when we need to see particular permission level. Also it is reusable.

So process to create a custom permission level for a subsite -

1. You should have "Manage Permission" permission to do this.
2. Go to the site collection.
3. Click on the Site Actions -Site Setting
4. Then click permission levels
5. Then click onn add permission level
6. Name the permission and add the permission as per the requirement and save it.
7. Now go to your sub site- SUBS
8. Click on the Site Actions -Site Setting
9. Create new group - grant the permission level you created in step 6 and save.
10. Now you have a group with custom permissions. Add users to it.

The best part is - i dont have to create this custom permission again & again for seperate sub sites  without inheriting the parents permission.