Central Kalal Tax Commissioner: 1 percent Kalal Tax will not apply to small scale jewel makers
Posted on: 16/Mar/2016 3:03:03 PM
Central Kalal Tax Department Commissioner informed that the recent imposition of 1 percent Kalal Tax on gold jewellery will apply only to the traders who do business in excess of Rs. 12 Crores.
After the recent budget imposed 1 percent Kalal Tax on Jewellery items, all jewellery shop owners protested against it and have been striking work.In this scenario, Chennai Region Kalal Tax Commissioner Mr. J M Kennedy had a session with the press reporters yesterday (Tuesday, 15th March).
In the presentation of the budget for the current year, only a minimal amount of Kalal Tax was imposed on Jewellery items. Without any interference from Police, the jewellery shop owners can register online and file their details of trading and pay the due Kalal Tax.
The Central Kalal Tax department had ordered the officials not to inspect the jewel manufacturing plants/places. The workers who are related in their business, like jewel job work and the goldsmiths need not register or pay any tax or file their business returns. The traders in the top of the jewellery items industry only need to do this.
The jewellery shop owners/manufacturers that do annual business in excess of Rs. 12 Crores only need to pay the recently imposed Kalal Tax.
From the next financial year, jewellery manufacturers doing business less than Rs. 12 Crores can get tax exemption for up to Rs. 6 Crores. Small scale jewellery manufacturer can get tax exemption for up to a business of Rs. 50 Lakhs for March 2016.
Based on the demand of the jewellery shop owners, the process of centralized registration of accounts has been introduced. So, jewellery shop manufacturers need not pay individually for their shops located at different places. Within 2 days of online registration, they can enter the data online and get the necessary proof of documents. The jewellery shops which register will not have any inspection of their manufacturing place. Also, they need not submit the data on their stock/reserve.
There is no need to pay Kalal Tax on a daily basis. It is enough to make monthly payments. For the benefit of jewellery shop owners who pay Kalal Tax, a simplified quarterly filing form, ER 8 has been introduced.
