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Excise Duty : The practice prevalent in jewellery industries in India on charging for wastages from the customers along with the cost of jewelle...
Excise Duty : ER8 is a quarterly Return for production and removal of goods and other relevant particulars. The excel utility can be used for cr...
Excise Duty : This write up is to update you on the recent developments on applicability of Excise on Gems and Jewellery Industry. On the basis ...
Excise Duty : In this year’s Budget, a nominal excise duty of 1% [without CENVAT Credit on Capital Goods and Inputs] and 12.5% [with CENVAT Cr...
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Excise Duty : The publication Central Excise Law and Procedure for Jewellery Industry has been brought out by Indirect Taxes Committee of ICAI t...
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Income Tax : There is no requirement of declaring pre-budget stocks. Directions have also been issued barring any visits to the jeweller’s p...
Excise Duty : In this year’s Budget, a nominal excise duty of 1% [without input tax credit] and 12.5% [with input tax credit] has been imposed...
Excise Duty : In exercise of the powers conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Gove...
Excise Duty : Specification of 17th August, 2016 as the date on which clause (v) of rule 5 and rule 6 of Central Excise (Amendment) Rules, 2016 ...
Excise Duty : a) Annex I - contains a brief summary of the amendments made vide various notifications to the existing Tariff and Non-Tariff noti...
Excise Duty : i. All jewellery manufactured and removed, on or before February 29, 2016, from the premises of the job workers or any other premi...
Excise Duty : i. No transit checks shall be carried out by the excise officials for checking movement of semi-finished or finished articles of j...
Imposition of Central Excise duty on unbranded precious metal jewellery at the rate of 1% – Government has decided to withdraw the levy on all precious metal jewellery, branded or unbranded, with effect from 17th March, 2012.
There is No Excise Duty on jewellers who are engaged only in trading activity i.e. only buying & selling so long as they do not engage in the manufacture of the same. This being so they are not required to obtain any excise registration and/or keep separate documents and file any excise returns. No field excise officer can ever raise any demand for excise duty from jewellers who are traders only.
Press reports after the presentation of the budget on 16.03.2012 indicate that the full import of the provisions contained in the legislation related to the levy of excise duty of 1% on precious metal jewellery are not clear to the trade.
The scheme of levy of excise duty on precious metal jewellery was introduced in the Budget 2011 vide notification No. 1/2011. Under the this scheme excise duty of 1% ad valorem was applicable to precious metal jewellery manufactured or sold under a brand name. The levy would now apply to both branded and unbranded goods (except silver jewellery) at the same rate of duty of 1%. ad valorem.
Changes in the Rates of Duty- a. Central Excise rate for all goods, other than petroleum, called the Standard Rate has been enhanced from 10% to 12% ad valorem. b. The merit rate of excise duty for all non-petroleum goods has been increased from 5% to 6%. c. The concessional rate of duty of 1% imposed on 130 items in the last Budget-2011 has been increased to 2%. However, the following 4 items would attract only 1% duty:-
Notification No. 8/2012-Central Excise (N.T.) Rule 12AA of the Central Excise Rules, 2002 has been amended to provide that every person who gets articles of jewellery of heading no. 7113 produced or manufactured on job-work shall obtain registration, maintain accounts, pay duty leviable on such goods and comply with the procedural requirements, as if he is the manufacturer. In other words, those artisans or goldsmiths who only manufacture jewellery for others on job-work not need to obtain registration. The option provided at present to the job-worker to get register, if he so desires, has been deleted.
Some enquiries have been initiated by the departmental agencies seeking to demand duty on such articles of jewellery which are packed in boxes, pouches etc. bearing a trade name or brand name or mark. References have since been received from the Trade requesting for providing clarity on levy of excise duty on jewellery sold under a Brand name. The industry has drawn attention to condition no, 8 of notification no.5/2006-CE dated 01.03.06 which provides that the exemption shall not be applicable to articles of jewellery of heading no 7113 on which brand name or trade name is indelibly affixed or embossed on the articles of jewellery itself. It has been argued that accordingly only such jewellery where brand name or trade name is indelibly affixed or embossed on the articles of jewellery itself should attract excise duty and duty should not be charged on the articles which do not themselves bear such marking but which are packed in a jewellery box or pouch bearing a trade name or brand name or in whose case, the warranty card or certificate of quality issued at the time of sale bears a trade name or brand name.
What were the conditions for levy of duty on articles of jewellery? In order to attract this levy the following conditions were required to be fulfilled: a. The articles of jewellery must be of the type covered under heading 7113 of Central Excise Tariff Act and such articles must have brand name or trade name indelibly affixed or embossed on the articles of jewellery itself. b. “Brand name” or “Trade name” meant a brand name or trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented words or any writing which is used in relation to a product, for the purpose of indicating, or so as to indicate, a connection in the course of trade between the product and some person using such name or mark with or without any indication of the identity of that person.
Shri P. Chidambaram recommended an excise duty of 2 per cent on such branded jewellery and clarified that there was no levy on unbranded jewellery, including unbranded gold jewellery. Accordingly an exemption notification 05/2006 CE dated 1-03-2006 was issued which exempted full duty in excess of 2% on article of jewellery on which brand name or trade name was indelibly affixed or embossed on the articles of jewellery itself.
In respect of levy of excise duty @ 1% on jewellery and other articles of precious metals which bear or are sold under a brand name, the provisions of Rule 12AA of the Central Excise Rules and Rules 2 & 4 of the Cenvat Credit Rules as amended by Notification Nos. 8/2011-Central Excise (N.T.) and 9/2011-Central Excise (N.T.) both, dated 24th March, 2011 may kindly be referred to. As in the case of branded garments, in case of goods falling under Chapter heading 7113 and 7114 also, where a brand owner gets jewellery or articles other than jewellery made from any other person, and supplies the raw materials such as gold/ silver/ gemstones etc. (of Chapter 71) to the job-worker for such manufacture, the duty liability would be on such person who gets jewellery or articles made from the job worker, unless the job worker opts to discharge the duty liability. However, a person manufacturing jewellery of heading 7113 or articles of heading 7114 bearing a brand name or sold under a brand name on his own account will be liable to pay excise duty unless he claims benefit of the SSI exemption.
