Wooing Gold Trade - Massive Simplification of Excise Duty on Articles of Jewellery
IN this year's Budget, central excise duty of 1% without credit or 12.5% with credit was imposed on articles of jewellery falling under heading 7113 of the First Schedule to the Central Excise Tariff 1985. Subsequent to that, the Government had set up a Sub-Committee of the High Level Committee, headed by Dr. Ashok Lahiri to interact with Trade & Industry on issues relating to procedure and compliance relating to excise duty of articles of jewellery. The Sub-Committee has given its report on 23.06.2016, which has been accepted by the Government.
The time limit for taking central excise registration of an establishment by a jeweller was extended up to 31.07.2016. Further, it was provided that though, the liability for payment of central excise duty will be with effect from 1st March, 2016, the assessee jewellers may make the payment of excise duty for the months of March, 2016; April, 2016 and May, 2016 along with the payment of excise duty for the month of June, 2016 upto an extended date of 31.07.2016.
Now, in its effort to woo the jewellers and simplify the procedures for them, the Government has issued notifications and circulars yesterday. The jewellers must appoint highly qualified consultants to read, understand and then explain the simplified law to them.
Also please see , & Levy of Excise Duty on Jewellery: SSI eligibility limit hiked to Rs 15 Crore; No excise audit for two years; Optional scheme to be introduced for smaller units
The massive literature issued by the Board has been summarised and tabulated as: