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Details Emerge of Deal That Ended Indian Jewelers’ Strike
Government Rules Out Arrests, Visits to Jewelers for Tax Collection until New Committee Reports
Mar 22, 2016 11:48 AM
By Rapaport News
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RAPAPORT... The Indian government
has pledged no arrests or prosecutions will be made in relation to a new tax on
the jewelry industry and central excise officers will not visit jewelers until
a new committee publishes its opinion on the matter.
Details
have emerged of a deal that ended
a nationwide jewelers’ strike over the 1-percent excise duty which saw
members of the trade across India down tools for nearly three weeks.
“The central excise officers will not visit the manufacturing
units, shops, place of business or residence of the jewelers,” K. Kalimuthu, an
under-secretary to the India government, wrote in a letter to customs
commissioners March 21.
“No arrest or criminal
prosecution of any jeweler will be done,” the letter said.
Until the committee reports, central
excise authorities will not challenge the valuation of precious metals or
stones stated by a jeweler in an invoice, provided the invoice includes carat
and purity data. In addition, officials will not search or seize a jeweler’s
stock.
The new sub-committee, chaired by Ashok Lahiri, a
former chief economic adviser to the Indian government, will liaise with the
industry. Issues on the table include compliance procedures, record
maintenance, forms to be completed and operating procedures.
The panel will comprise three representatives of the jewelry trade
appointed by the government; one legal expert also appointed by the government;
a relevant officer put forward by the Ministry of Commerce and Industry; and high-level
officials from the central excise department nominated by the Central Board of
Excise and Customs. Once the committee is formed, it will have 60 days to
publish its recommendations.
Trade associations will get
the opportunity to make representations to the sub-committee.
Jewelers have 60 days from March 1 to register for the payment of the
excise duty, according to Kalimuthu. They may defer the March payment and pay it together with their April payment.
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Tags:
Excise duty, India, Rapaport News, Strike, tax
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