Budget 2016-17 has proposed a nominal excise duty of 1 %
(without input tax credit) and 12.5 % (with input tax credit) on
articles of jewellery.
With jewellers on strike for a third day to oppose levy of excise duty, the finance ministry on Friday March 04,2016 went into damage control clarifying that the one per cent levy on non-silver articles would be only for jewellers with Rs 12 crore turnover and not small traders.
It said that central excise officers have been directed not to visit the premises of jewellery manufacturers
The Finance Ministry said that articles of silver jewellery [other than those studded with diamonds, ruby, emerald or sapphire] are exempt from this duty. It said the Budget provides for excise duty exemption limit of Rs 6 crore in a year for small scale industries in the jewellery business (as against normal limit of Rs 1.5 crore).
“Thus, only if the turnover of a jeweller during the preceding financial year was more than Rs 12 crore, he will be liable to pay the excise duty,” the statement said.
Articles of silver jewellery (other than those studded with diamonds, ruby, emerald or sapphire) are exempt from this duty.
With jewellers on strike for a third day to oppose levy of excise duty, the finance ministry on Friday March 04,2016 went into damage control clarifying that the one per cent levy on non-silver articles would be only for jewellers with Rs 12 crore turnover and not small traders.
It said that central excise officers have been directed not to visit the premises of jewellery manufacturers
The Finance Ministry said that articles of silver jewellery [other than those studded with diamonds, ruby, emerald or sapphire] are exempt from this duty. It said the Budget provides for excise duty exemption limit of Rs 6 crore in a year for small scale industries in the jewellery business (as against normal limit of Rs 1.5 crore).
“Thus, only if the turnover of a jeweller during the preceding financial year was more than Rs 12 crore, he will be liable to pay the excise duty,” the statement said.
Articles of silver jewellery (other than those studded with diamonds, ruby, emerald or sapphire) are exempt from this duty.
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