Allaying fears of jewellers top officials of Central Excise department assured that no taxman will visit jewellery shops or show-rooms to collect the levy nor were jewellers required to maintain “separate books.”
The jewellers continued their strike against introduction of excise duty on gold ornaments for the 15th day Tuesday, Rakesh Sharma, principal commissioner of Central Excise and Service Tax of Rajkot region held a press conference Tuesday and sought to dispel “certain doubts” that jewellers have since Finance Minister Arun Jaitley announced to levy one per cent excise on jewellery while presenting Budget 2016-17 on February 29.
”The objective is just to clarify certain doubts. Jewellers are already paying one per cent VAT (value-added tax levied by state government). We have simplified all procedures and books valid for calculating VAT will be valid for calculating central excise. Therefore, there is no need for keeping separate books.
Furthermore, all that a jeweller has to do is to get himself registered online and make the tax payment also online. There will be no physical verification of such a registration and central excise officers have been directed not to visit premises of jewellery manufacturers,” Sharma said.
The commissioner further said that small goldsmiths and artisans need not pay the excise duty.
“Only principal manufacturers are liable to pay the central excise. Therefore, goldsmiths and artisans who are doing job work of manufacturing jewellery need to pay the new tax,” said Sharma.
Karnail Singh, the Commissioner of Central Excise Vadodara, said, “There is no reason to go on strike. This Budget proposal is a step forward towards aligning gold with GST. The small scale industries, customers or the artisans will not be affected by this levy. The 1% increase of excise duty will only applicable to principal traders with turnover of Rs 12 crore and above.”
Sharma also said articles of silver jewellery, except those studded with precious stones, were exempted from excise. “To make the compliance easy, we have provided that tax will have to be paid by fifth of next month and return every quarter. There will be zero interface between tax officers and jewellers,” he said.