India Tax Payer - Forum

Posted: 20-03-2012

The excise duty on gold ornaments is another major taxing decision in the budget. Even a small quantity of gold manufactured will be valuable and will cross the ten lakh duty limit. How can small time manufacturers / artisans who are the prime suppliers to the large jewelries pay excise duty and how can the department monitor and control them? Just walk into Sullivan street in Coimbatore and there are atleast 50 workshops (pattarais) in every building. Do they want to register all of them and monitor all of them; file returns, conduct audits. Crazy beggars! they do not have any idea what they are doing.

The result of this additional excise duty will be more of the jewelry trade will go black. Whatever good work was done by the rational VAT of 1% is undone by this absolutely unacceptable excise duty on gold. This is another way of the Central government to poke its nose into State governments collection points.