JAMMU: Additional Commissioner, Central Excise, J and K, K.R Madhar on Tuesday stated that a nominal Central Excise Duty of 1 per cent (without input tax credit) and 12.5 per cent (with input tax credit) has been imposed on articles of jewellery vide Budget 2016-17.
While clarifying the doubts raised by the trade and industry regarding this new levy, he informed manufacturers are allowed to take credit of input services, which can be utilized for payment of duty on jewellery.
“Easy compliance with provision for online application for registration, payment of excise duty and filing of returns, with zero interface with the departmental officers, he said adding that the central excise officers have been directed not to visit the premises of jewellery-manufacturers. He further said that articles of silver jewellery (other than those studded with diamonds, ruby, emerald or sapphire) are exempt from this duty and an artisan or 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 (Rule 12AA of the Central Excise Rules, 2002). 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 (as against normal SSI eligibility limit of Rs. 4 crore), he said adding that thus, only if the turnover of a jeweler during preceding financial year was more than Rs. 12 crore, he will be liable to pay the excise duty.
Jewelers having turnover below Rs. 12 crore during preceding financial year will be eligible for exemption upto Rs. 6 crore during next financial year, he added.
“Such small jewellers will be eligible for exemptions upto Rs. 50 lakh for the month of March, 2016,” he said.
He also 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 suffice.
Jeweler’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, he informed adding that there is no requirement to file a stock declaration to the jurisdictional central excise authorities. Excise duty is to be paid on monthly basis and not on each clearance, he said and informed that with first installment of duty payment for the month of March, 2016 to be, paid by 31st March, 2016. A simplified quarterly return has also been prescribed, for duty paying jewelers and moreover, simplified export procedure is available for exempted units, he concluded.