In order to broad base taxation and move towards GST in 2017, the Hon’ble Finance Minister Shri Arun Jaitley has proposed a levy of excise...
In order to broad base taxation and move towards GST in 2017, the Hon’ble Finance Minister Shri Arun Jaitley has proposed a levy of excise duty @ 1% without input tax credit and 12.5 % with input tax credit on articles of jewellery excluding silver jewellery, other than studded with diamonds/other precious stones.However, a jewellery manufacturer will be eligible for exemption from excise duty on first clearances upto Rs. 6 Crore during a financial year, if his aggregate domestic clearances during preceding financial year was less than Rs.12 crore.
There is some unrest amongst the jewellers against the new proposal.In a bid to pacify jewellers, the CBEC promised zero physical interface with tax officials, hassle free registration etc.The Government has also decided to constitute a sub-committee of the High level committee headed by Dr. Ashok Lahiri to study the issues in this respect. It has further been asserted that the move is aimed at including gold jewellery within the tax net in preparation of the goods and service tax regime (GST) and monitoring of black money was only part of the reason.
In order to support and acquaint the industry with the fine nuances of excise law and procedures and the implications of the amendment, the Indirect Taxes Committee of ICAI is bringing out this publication “Central Excise law and procedure for jewellery industry”. The publication tries to address the major concern areas of the jewellery industry. It will prove very beneficial to its users including revenue officers, industry or professional advisors