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Thread: Jewellers oppose DTC provisions
01-04-2010, 04:43 PM #1
Jewellers oppose DTC provisions
Strongly opposing the provisions for search and seizure, tax on gross assets and tax deduction at source on all payments contained in the direct tax code (DTC), the All India Gems and Jewellery Trade Federation today said such provisions would amount to penalizing the industry already reeling under the effects of global recession.
Federation founder-members Zaveribhai Zaveri and Haresh Soni told reporters here that a memorandum had already been sent to Union Finance Minister Pranab Mukherjee about the concerns of more than three lakh manufacturers, wholesalers and retain jewellers in the country. The proposed provisions were detrimental to the operations and sustenance of the assessees.
The federation suggested exclusion from the powers of the authorised officer the power to seize any bullion, precious or semi-precious stones or jewellery which is held as stock-in-trade of the business, no tax be levied based on value of assets of the company and payments for supply of goods not to be subjected to TDS.
Mr Zaveri said seizure of entire stock in trade when there is any difference found during raids is not acceptable. Proposal for two per cent tax on gross assets is objectionable as the industry operates on small margins with high inventory levels. Deduction of tax at 10 per cent would result in blockage of working capital, he added.
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