New Publication ‘Central Excise Law and Procedure for Jewellery Industry (including 105 FAQs)” to promote ease of doing business
The Union Budget 2016-17 has proposed to impose a 1% excise duty (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. A higher threshold exemption upto Rs. 6 crore of clearances in a year subject to previous year clearances not exceeding Rs. 12 crore has been extended.
The basic idea behind levying excise duty on jewellery is to encourage this industry to join the mainstream by recording all transactions. Central excise is astock reconciliation based control and imposition is also a step in transition to GST. The levy of duty has given rise to the need of addressing the concerns of jewellery industry and enabling ease of doing business for them.
We are glad to inform you that Indirect Taxes Committee of ICAI has brought out a new publication on “Central Excise Law and Procedure for Jewellery Industry” with a view to support the “ease of doing business” initiative of the Government. It would also help our members, trade & industry and other stakeholders to understand the intricacies involved in taxation of Jewellery. Further, for ease of understanding, the concepts of levy, valuation, payment, exemption, registration, invoicing, return etc. have been explained in the form of frequently asked questions (FAQs). This publication will act as a guide for all the stakeholders of jewellery industry. We are sharing this publication with the CBEC as responsible part of Government to enable them to take reasoned decisions on recommended procedures.
An e-book on the same is freely available for downloading at our portalhttp://ucanapply.s3.amazonaws.com/icai/download/CELP_Jewellery%20sector_final_29.3.pdf.
It is also an opportunity for members who are practicing in VAT or Service Tax to serve the jewellery industry. A publication on textiles similarly is being envisaged.
Hope the booklet would assist you in your professional endeavors. You may also register for Indirect Taxes update at the website of committee www.idtc.icai.org . In case of any support you may contact Secretary, Indirect Taxes Committee at idtc@icai.in or 0120-3045954.
Source ICAI