E&C Additional Commissioner clears doubts on gold levy

Additional Commissioner of Central Excise & Customs Department, Mysuru zone Parag C Borkar spoke to mediapersons yesterday, clarifying doubts expressed by jewellery industry regarding the new levy imposed by central govt.

One percent levy on gold articles would be imposed only for jewellers with Rs 12 crore turnover and not for small jewellers, said Parag C Borkar, Additional Commissioner of Central Excise & Customs Department, Mysuru zone.

Addressing mediapersons at Central Exercise office here on Tuesday, Parag C Borkar said: “Some doubts have been expressed by the traders and industry regarding this levy. In that context, salient features of this levy are: easy compliance with provision for online application for registration, payment of excise duty and filing of returns with zero interfaces with the departmental officers, the central excise officers have been directed not to visit the premises of jewellery manufacturers.  Articles of silver jewellery other than those studded with diamonds, ruby and emerald have been exempted from this duty”.

“A goldsmith who only manufactures jewellery on job-work basis is not required to register with the Central Excise, pay duty and file returns, as all these obligations will be on the principal manufacturers. There is a substantially high Small Scale Industries excise duty exemption limit of Rs 6 crore in a year (as against normal SSI exemption limit of Rs 1.5 crore) along with a higher eligibility limit of Rs 12 crore. Thus, only if the turnover of a jeweller during preceding financial year was more than Rs 12 crore, he will be liable to pay the excise duty. Jewellers 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,” he said.

Clearing doubts regarding levy on gold articles, Additional Commissioner of Central Excise & Customs Department, Mysuru zone Parag C Borkar informed that for determination of eligibility for the SSI exemption for the month of March, 2016 or financial year 2016-17, a certificate from a Chartered Accountant, based on the books of accounts for 2014-15 and 2015-16 respectively, would be sufficient.

He also revealed that the facility of Optional Centralized Registration has also been provided. Hence, there is no need for a jewellery manufacturer to take separate registrations for all his premises.  Field formations have been directed to grant hassle-free registrations, within two working days of submission of the registration application. Further, there will be no post-registration physical verification of the premises. Jeweller’s private records or records for State VAT or records for Bureau of Indian Standards (in the case of hallmarked jewellery) will be accepted for all Central Excise purposes. Also, there is no requirement to file a stock declaration to the jurisdictional central excise authorities. For further details, one can contact Ph: 0821-2476953/958.

Additional Commissioner, Mysuru zone Central Excise & Customs Department Parag C Borkar addressing the mediapersons at a press meet in Tuesday. Deputy Commissioner D Lakshmikantha, superintendents V G Deshpande, Ramesh, N Shankar is also seen.

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