The Gems and Jewellery Federation (GJF), the national body of the jewellery trade in the country, has made a representation to the Ministry of Finance to seek modifications in the proposals in the Direct Taxes Code (DTC). The apex body is objecting to the search and seizure provisions, tax on gross assets and TDS on all payments. Mr Vinod Hayagriv, Chairman, Gems and Jewellery Federation, said: “Seizure of entire stock in trade would result in cessation of manufacturing operations, resulting in break-down of business activity. It would also cause jewellers to default on repayment commitments.”
Taxing times
He added that the Federation was opposed to “the two per cent tax on gross assets since the industry operates on small margins with high inventory levels.
GJF also objects to deduction of tax at 10 per cent on all payments made for gold, diamonds, jewellery, etc as it would result in blockage of working capital for the industry which is facing a major liquidity crunch.”
Proposals such as these in the DTC are detrimental to the industry, which is slowly moving towards organised retailing, he said.
It’s high time to agitate the matter to the concerned authority vis a vis to the Finance Minister for an appeal to withdraw such draconian law,otherwise million of artisans would take a drastic step–i.e. suicide.
This is perhaps a little bit of The Gold Control Act-which had abolished in the year 1990.