Excise Duty on Gold Jewellery - No Search, seizure or arrest
THE 1% excise duty on jewellery imposed with effect from 1st March 2016 has resulted in too much confrontation and distrust that gold shops downed their shutters in fear of excise.
What is the gold seller afraid of? 1% duty or the Excise officers or the complicated procedure?
The Government has decided to constitute a sub committee of the High Level Committee headed by Dr. Ashok Lahiri to study the issue. The sub committee will study the issues related to compliance procedure for the excise duty, including records to be maintained, forms to be filled, operating procedures and any other issues that may be relevant. The Sub-Committee will submit its report within 60 days of its constitution.
Till the Committee submits its report there is a hands-off policy by the CBEC.
1. All payments of central excise duty will be based on first sale invoice value;
2. The central excise authorities will not challenge the valuation given in the invoice provided the caratage / purity and weight of the gold/silver with precious stones; and carats of diamond/precious stones are mentioned on the invoice;
3. The central excise officers will not visit the manufacturing units/ shops/ place of business/residence of the jewellers;
4. No arrest or criminal prosecution of any jeweller will be done;
5. No search or seizure of stocks by any central excise official will be effected;
6. Exporters will be allowed to export on self declaration and submission of LUT to customs without the need to get LUT ratified by central excise. Prevailing system will continue.
7. The registration of the establishment with the central excise department can be taken within 60 days from 1st March, 2016. However, the liability for payment of central excise duty will be with effect from 1st March, 2016, and as a special case for the month of March, 2016, the assessee jewellers will be permitted to make payment of excise duty along with the payment of excise duty for the month of April, 2016.
Also see Excise Duty on Gold Jewellery - Kal, AajaurKal ? & It's back to business
CBEC Circular No. 1021/9/2016-CX., Dated: March 21, 2016