The income-tax department will not conduct search and seizure operations against jewellers with an annual turnover of up to ₹10 crore or challenge valuations regarding purity or weight of the metal, though the central government will not withdraw the 1% excise duty on non-silver jewellery.
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The jewellers’ associations expressed their relief with regard to the acceptance of these recommendations which were submitted by the sub-committee on June 23. “Hiking the SSI exemption limit to Rs. 10 crore and the SSI eligibility limit to Rs. 15 crore independent of Committee’s recommendations is a very positive step to relax the Excise registration”.
Summons may be issued only with the approval of Commissioner, the Ministry added. This created an uproar with jewellers going on nearly a three- week strike.
The committee also recommended that no excise audit will be carried out for the first two years for units with duty payments of less than ₹1 crore. To assuage their worries of the jewellers, the government had promised that they will not be subject to any harassment and announced a string of safeguards. The government also constituted a sub-committee of the high level committee to interact with trade and industry on tax laws to look at compliance procedures for the levy of this excise duty which submitted its report last month.
Repairs and alterations that do not change the identity and use of the goods are not “manufacturing”, the Ministry said.
“No excise duty may be payable on the sale of traded goods; (also) records maintained for State VAT and other private records, showing details of inputs, stocks, manufactured goods, sold/exported goods, etc to be accepted for excise purposes”.
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Shares of Tara Jewels soared 6.45 per cent and Shree Ganesh Jewellery House jumped 6.43 per cent on BSE. “Stock details to be maintained on weight and caratage basis”, it said.
