Gold dealers plan stir to oppose excise, FBT

Members and traders registered with Gold Dealers Association (GDA) of Rajkot met in in the city to chalk out the future strategy for opposing the implementation of central excise (CE) tax on the trade.

The tax was likely to be imposed in near future.

The meeting followed the trade interaction with Madras Jewellers & Diamond Merchants' Association (MJDMA) whose office bearers were in city for an interaction on the Gold Jewellery India International Exhibition (GJIIE) 2006 scheduled between 17-20 February 2006 at Chennai.

In his address Kantibhai Ranpara, president of GDA Rajkot, said, "In past also we have strongly opposed the implementation of central excise taxes on our trade, and once again its likely that government is seriously thinking to impose such taxes on our trade to which we have to assemble in a united manner and give substantial fight opposing the implementation of central excise taxes on our trade."

In last year's budget, the proposal for implementing such taxes was there to which we opposed as there were no clear-cut guidelines distinguishing between branded jewellery and the jewellery having sign of the goldsmith who made it.

CE officials homed in on jewellery having sign of the jewellery maker as being a brand and slammed CE taxes on it.

Branded jewellery and jewellery having sign of the jeweller is altogether different from each other, claimed Ranpura.

Pravin Mehta, project secretary of GJIIE 2006 and MJDMA member, said the trade was worried over the issue.

He appealed to the trade lobby to put up a united fight on the issue. "In fact, when the CE Taxes were imposed on trade and we went for a nationwide shutdown of business, the Central Excise Commissioner of Chennai called us for a representation as to why we had shut down the business. We responded that we had to support our trade lobby and we oppose implementation of such taxes on our trade."

GDA members were determined to oppose the fringe benefit tax (FBT) as imposed on partnership firms across the trade.

"Paying tax on income can be very well understood "� but how can somebody think of paying tax on the expenses incurred? We will also appeal concerned authorities to remove FBT from the trade," said Balvant Badani, secretary of GDA.

The MJDMA team from Chennai was here to woo the jewellers of Rajkot to participate in GJIIE 2006 as Chennai, which was the hub of gold jewellery. Southern India accounted for 33 per cent of the gold ornaments sold nationally.

Chennai was the venue GJIIE 2006. This event followed the success of GJIIE 2005 at Chennai last year.

GJIIE 2006 would be a business-to-business trade fair on gold jewellery, allied machinery and products jointly hosted by Bangalore based event management firm Expoworld and MJDMA.

While making presentation on GJIIE 2006, Sandeep Bekal, CEO of Expoworld, said, "As light weight jewellery manufactured in Rajkot is much in demand across South India, we are here to explain the advantage of showcasing the products in this event to the city based jewellers."