Budget 2012 - Excise amendments relating to Branded Metal Jewellery and Ready Made Garments

[CSSwati Rawat]

GOLD JEWELLEREY

EXCISE DUTY -

BRANDED PRECIOUS METAL JEWELLERY -

 

To include jewellery, not bearing a brand name, under the ambit of levy of excise duty of 1 per cent on branded precious metal jewellery .

to simplify its operation and minimise its impact on small artisans and goldsmiths following need to be noted for the levy of excise:-

• to charge this duty on tariff value equal to 30 per cent of the transaction value

• to extend small-scale exemption up to annual turnover not exceeding `1.5 crore for units having a turnover below ` 4 crore in the previous year

• to compute turnover on the basis of tariff value; and

• to place the onus of registration and payment on the person who gets jewellery manufactured on job-work.

Refined gold - Increased from 1.5 per cent to 3 per cent. This step is initiate to enhance the current account deficit as import of Gold contributes a major proportion in economic growth

CUSTOM DUTY -

Gold - Increase basic customs duty on standard gold bars, gold coins of purity exceeding 99.5 per cent and platinum from 2 per cent to 4 per cent and on non-standard gold from 5 per cent to 10 per cent. In sync with these, basic duty on gold ore, concentrate and dore bars for refining is being enhanced from 1 per cent to 2 per cent

READYMADE GARMENTS -

EXCISE DUTY -

Increase in duty to 12 per cent and enhance the abatement to 70 per cent from the Retail Sale Price as compared to 10 per cent with abatement of 55 per cent as earlier. As a result, the incidence of duty as a percentage of the Retail Sale Price would come down from 4.5 per cent to 3.6 per cent.

Discussions to this article

[Naveed S]

Its interesting to note that duty on Readymade garments has come down due to increase in abatement rate; even though the excise duty is increased from 10 to 12 %.