Comments
The Finance Ministry has assured bullion traders that they will not be ‘harassed' by Excise officials merely on the basis of allegation of duty evasion. The Ministry is all set to include these in a detailed circular to Excise officials to pacify agitating bullion traders.
Meanwhile, the Finance Minister, Mr Pranab Mukherjee, is likely to meet representatives of jewellers' associations on Friday to sort out the issue. Mr S. K. Goel, Chairman of the Central Board of Excise and Customs, said: “We have already clarified to all the associations that there is no cause for apprehension. The Finance Minister has called a meeting with them. The meeting is likely to take place the day after tomorrow.”
Traders have been agitating over a Budget proposal to withdraw unbranded gold jewellery from exemption of one per cent excise duty. This duty is proposed to be levied on 30 per cent of the transaction value. The proposal also includes relief for small jewellers. However, bullion traders apprehend unnecessary harassment by Excise inspectors under the proposed taxation system.
A senior Finance Ministry official said the new circular would not allow raids until and unless there is an intelligence report of massive tax evasion. Even in such a case, the raids can be carried out only after an officer in the rank of Additional Commissioner or Deputy Commissioner approves it.
Invoice submission
Another provision in the circulation may allow an invoice to be submitted without any attestation. The requirement for submission of gate pass may also be done away with, he added. The gate pass proves that a transaction has been completed and the buyer has taken delivery.
The Finance Minister has already raised the small-scale exemption limit to an annual turnover level of Rs 5 crore from Rs 4 crore. The Finance Ministry had also clarified that since most jewellers get jewellery manufactured on job-work from small artisans and goldsmiths, the responsibility of registering with the Central Excise authorities and paying the duty has been assigned to the ‘principal' manufacturer who gets the goods manufactured. In other words, those artisans or goldsmiths who only manufacture jewellery for others on job-work, need not obtain registration.
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.