Vijayawada: Central excise commissioner Mr J.S. Chandrasekhar on Tuesday asked gold traders in the city not to worry since the tax burden would be only on business with a turnover of more than Rs 12 crore. Mr Chandrasekhar held a meeting with gold merchants who launched a strike on Tuesday at the office of the Central Excise and Customs.
Speaking on the occasion, Mr Sekhar said that the central government would only impose 1 per cent excise duty on gold without input tax credit and 12.5 per cent on gold with input tax credit. “This is only for businesses with more than Rs 12 crore turnover and small merchants would not have any burden of it,” Mr Sekhar said. He called on traders to register themselves with the department if their trades come under excise duty purview. He said one could register online till April-end and need not walk up to the office.
“After registration concerned officers would visit the shops and manufacturing units for inspection and there would not be any sort of seizures, arrests or criminal prosecutions,” he said. Central excise additional commissioner Mr V. Nagendra Rao said that goldsmiths who make small ornaments need not register. Businesses having turnover upto Rs 6 crore need not pay any taxes and those with Rs 12 crore turnover last year will have an exemption on Rs 6 crore.
