News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
General »
 Impact of proposed new income tax rates on a Rs 20 lakh salary
 Income tax benefits on EPF contributions: New vs existing tax regime
 Why a simplified tax regime is the need of the hour
 Settling The Old vs New Tax Regime debate
 Mutual funds for a first-time investor
 All eyes on Nirmala Sitharaman's second Budget for tax relief
 FM must slash income tax rates, only way to stimulate demand
 Govt may go for income tax relief to spur demand, says report
 Countries should tax the money that their citizens make globally
 Personal income tax rate cut can revive economy
 Economic slowdown hits Income Tax collections

Jewellers ask govt to temper tax demand
March, 13th 2014

The All India Gems and Jewellery Trade Federation appealed to the government not to target its members for higher advance tax.

In a letter faxed to Union Finance Minister P Chidambaram, the Federation has requested him to hold back the revenue department officials from going after jewellers across the country for payment of enhanced advance taxes based on last fiscal year earnings.

Haresh Soni, Chairman, GJF, told Business Line: “We have received complaints from our members particularly from Chennai, Bangalore, Mumbai and Gujarat claiming that the income tax department is pressurising them to match their last year’s advance tax payment so that the department can at least reach close to the target set by the government.”

It is difficult to pay advance taxes at the rate of last financial year’s income since the overall business of gold jewellery trade is down by 40 per cent, he said.

“We want the department to consider the advance tax payment on realistic figures as declared by member assesses. We are willingly to pay the taxes based on our declared income for the year,” said Soni.

The government's gold control rule has resulted in lower than expected turnover by the Indian gems and jewellery industry and the insistence of additional payment of advance taxes by revenue officials has impacted the overall morale of the business very badly amid a period of gloom on the economic front, he said.

The gem and jewellery contribution to overall export is expected to fall to 15 per cent this year compared to 17-18 per cent achieved last fiscal. The domestic jewellery trade is pegged at ?2.5 lakh crore, which is down by about 30-40 per cent, said Soni.

Advance tax is a system of staggered payment of income-tax over four quarters, and is generally considered as a barometer of a company’s performance during a quarter.

The government has restricted import of gold in a bid to bridge the widening current account deficit. This has impacted the availability of gold at reasonable cost for jewellery makers and dampened the sentiment of jewellery buyers in most quarters of the financial year.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting