Government rolls back 1 percent tax on cash purchase of gold jewellery
Posted on: 31-05-2016 , 04:16:PM | DY365 Bureau
May 31, 2016- The government on Tuesday rolled back its decision to apply 1 percent tax collected at source (TCS) on cash purchase of gold jewellery of Rs 2 lakh and above and raised the limit to Rs 5 lakh with effect from 1 June 2016.
Finance Minister Arun Jaitley had in the latest budget imposed 1 percent excise duty on non-silver jewellery which led to widespread protests by jewellers.
The jewellers were liable to pay excise duty with effect from 1 March 2016. The government has, meanwhile, set up a committee under former Chief Economic Advisor Ashok Lahiri to look into demand of agitating jewellers and also into their grievances with regard to compliance and operating procedures for payment of excise duty.
This is fourth time the government has rolled backed its own decision.