Taxmen not to train guns on jewellers with annual turnover of below ₹10 cr
NEWDELHI: 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.
These are part of the recommendations of a panel headed by former chief economic adviser Ashok Lahiri. The finance ministry on Wednesday accepted the recommendations.
According to the Lahiri committee, jewellers with turnover of over ₹15 crore will be subject to the 1% excise duty, as well as searches and seizures by the tax department.
Finance minister Arun Jaitley announced the 1% excise duty in the budget. Following the announcement, jewellers went on an over two-week long strike, prompting the finance ministry to give assurances to jewellers about minimum interface from the tax department. The ministry had also announced procedures to be followed till the committee submitted its recommendations, which included not challenging the valuation regarding purity or weight of the metal in the invoice, and an assurance of no criminal prosecution or seizure of stocks.
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.
The sub-committee was set up in March to interact with trade and industry representatives on the imposition of the central excise duty. This committee looked into issues related to compliance procedures, including maintaining records, filling up forms and other relevant issues.
According to an earlier circular issued by the Central Board of Excise and Customs, the deadline for jewellers to get registered with the central excise department was extended to July 31. The circular also said that jewellers can settle excise dues for the March-May period along with that of June payments by July 31.
After the finance ministry accepted the recommendations, revenue secretary Hasmukh Adhia said in a tweet: “The report of Laheri committee is also accepted by Govt in toto about procedural aspects of the levy”.