 "Jewellers to continue strike, despite assurance of no inspector raj")
Jewellers associations in the country have decided to continue their strike till they get an assurance that the Union Budget proposal for an excise duty on jewellery will be removed.
Union finance ministry officials told a delegation of jewellers they'd consider the latter's alternative proposal to raise the import duty on gold by one per cent.
The ministry stated, “Central excise officers have been directed not to visit the premises of jewellery manufacturers”, in response to the trade's allegation that the new levy would also lead to ‘inspector raj’. Adding that for even the new nominal duty, jewellery makers could take credit for the input services.
Kamboj stated: “Till we get an assurance from the ministry that the excise duty will be removed, the strike will continue indefinitely.”
The Budget proposes a nominal excise duty of one per cent without input tax credit and 12.5 per cent with input tax credit on articles of jewellery.
Easy compliance with the provision for online application for registration, payment of excise duty and filing of returns, with zero interface with departmental officers, were other clarifications mentioned in the press note issued by the ministry. Job workers are not to register with the excise department, as the responsibility to pay is of the manufacturer who is getting them the work. A simplified quarterly return has also been prescribed for duty paying jewelers, said the note.
Gold prices at 22-mth high
Standard gold price on Friday closed at Rs 29,300 per 10 gram — a 22-month high. The spurt in price is thanks to a sharp increase in international price, which has seen a high of $1,274.9. However, due to jewellers’ strike, bullion dealers are still quoting gold at a discount of $30 per ounce to import cost. Demand is also dull.
“Only if the turnover of a jeweller during a preceding financial year was more than Rs 12 crore will he be liable to pay the duty. Jewelers having turnover below Rs 12 crore during the preceding financial year will be eligible for exemption up to Rs 6 crore during the next financial year. Such small jewellers will be eligible for exemptions up to Rs 50 lakh for the month of March 2016,” said the government note.
Meanwhile, standard gold price on Friday closed at Rs 29,300 per 10 gram — a 22-month high. The spurt in price is thanks to a sharp increase in international price, which has seen a high of $1,274.9. However, due to jewellers’ strike, bullion dealers are still quoting gold at a discount of $30 per ounce to import cost. Demand is also dull.
Union finance ministry officials told a delegation of jewellers they'd consider the latter's alternative proposal to raise the import duty on gold by one per cent.
The ministry stated, “Central excise officers have been directed not to visit the premises of jewellery manufacturers”, in response to the trade's allegation that the new levy would also lead to ‘inspector raj’. Adding that for even the new nominal duty, jewellery makers could take credit for the input services.
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These clarifications came on the third day of what was to be a three-day strike and after a meeting of officials with Indian Bullion and Jewellers Association president Mohit Kamboj in the first half of Friday.
Kamboj stated: “Till we get an assurance from the ministry that the excise duty will be removed, the strike will continue indefinitely.”
The Budget proposes a nominal excise duty of one per cent without input tax credit and 12.5 per cent with input tax credit on articles of jewellery.
Easy compliance with the provision for online application for registration, payment of excise duty and filing of returns, with zero interface with departmental officers, were other clarifications mentioned in the press note issued by the ministry. Job workers are not to register with the excise department, as the responsibility to pay is of the manufacturer who is getting them the work. A simplified quarterly return has also been prescribed for duty paying jewelers, said the note.
Gold prices at 22-mth high
Standard gold price on Friday closed at Rs 29,300 per 10 gram — a 22-month high. The spurt in price is thanks to a sharp increase in international price, which has seen a high of $1,274.9. However, due to jewellers’ strike, bullion dealers are still quoting gold at a discount of $30 per ounce to import cost. Demand is also dull.
“Only if the turnover of a jeweller during a preceding financial year was more than Rs 12 crore will he be liable to pay the duty. Jewelers having turnover below Rs 12 crore during the preceding financial year will be eligible for exemption up to Rs 6 crore during the next financial year. Such small jewellers will be eligible for exemptions up to Rs 50 lakh for the month of March 2016,” said the government note.
Meanwhile, standard gold price on Friday closed at Rs 29,300 per 10 gram — a 22-month high. The spurt in price is thanks to a sharp increase in international price, which has seen a high of $1,274.9. However, due to jewellers’ strike, bullion dealers are still quoting gold at a discount of $30 per ounce to import cost. Demand is also dull.