As jewellery shops across all over India remained shut since 1st March 2016 till date in order to oppose imposed excise duty, the government has already cleared that, the 1 percent excise tax on non-silver items will be only applicable to the jewellers who are having Rs 12 crore or more turnover. it is not for small traders.
Finance Ministry released a statement to clarify that Budget of 2016-17 had proposed excise duty of just 1 percent and 12.5 per cent (with input tax credit) on articles of jewellery other than silver. Finance Ministry also accepted that central excise officers will not be visiting the premises of any jewellery manufacturers. So, only if the turnover of a jeweller during previous financial year was more than Rs 12 crore, than they will be liable to pay the 1 percent excise duty on their turnover. Jewellers having turnover below Rs 12 crore during preceding financial year will be eligible for exemption up to Rs 6 crore during the fiscal.
Why Jeweller must pay excise?
As per my opinion, I am not able to understand that, how they are saying that new duty will not just hit business during slowdown but also put a significant compliance burden on the industry? Does all jeweller earn more than 12 cr per annually? Well i don’t think so, only 20% jewellers are having income above Rs. 12 cr. If a jeweller want to sale Rs. 12 cr, than they need to sell 42 K.g. Gold means 3.5 k.g. every month, this is not possible for small scaled jewellers. So even my personal view is they should agree on this and our government should not roll back on this.
This tax is applicable to whom? lest see a turn over of few top company of India.
|Company Name||Turn Over|
|Rajesh Exports||30,000 Crore|
|Geetanjali Jewellers||12,400 Crore|
|Malabar Gold||12,000 Crore|
|Kalyan Jewellers||9,400 Crore|
|Bhima Jewellers||8,000 Crore|
|Tanishq Gold||7,000 Crore|
|PCJ Jewellers||5,200 Crore|
|Tribhovandas Bhimji Zaveri||1,385 Crore|
|Senco Gold||900 Crore|
|Krishniah Chetty & Sons||600 Crore|
*this data is collected from few website and news site (Indian Times)
So lets think what is one percent of 86,885 Crore, its not a small amount its 868.85 Crore. this are only top 10 company but list is long. This is not affecting to the small traders but surly this will affect this giants. Many Black money holder keep their money in term of gold as it is easy to carry rather than the bank notes and even that can be hidden.
No Jewellers keep the accurate record or their company. If the company it working on large scale than its very tough to keep the record of all account so what ever company says that got excepted. If any income-tax raid took place than they give bribe and close the case. Hence government of India is taking good initiative to implement the excise duty and due to that all jewellers have to keep the track record of each and every sales. and even it will be very easy to identify the frod if any are taking place as the exice department use to tally the accounts at both end. Due to this huge company the jewellery business has been reach upto half of our Economy of the country. But this business is just Dump for government as sold jewellery are stored at the home with no help in our economy.
Our Government had made the Pan card compulsory for sale above 2 lakh this doesn’t affect the business of the small traders but reduced the sale of this huge organization by 30%.