SlideShare a Scribd company logo
Registration under excise by jeweler: A Thoughtful Decision
CA Rajesh Kumar T R;
CA Ashish Chaudhary
Background
Registration with tax authorities is first step for any assessee to make compliance
with the law and similar is the case for jewelers who have been brought within
excise ambit in Budget 2016-17. But it is very interesting that special provisions
have been made for registration of person engaged in manufacturing of jewellery
under excise and these provisions could sometime offer tremendous planning
opportunities to optimize the tax liability. The paper writers have discussed few of
such aspects in the article.
Provisions for registration under central excise:
Section 6 of the Central Excise Act provides that every person engaged in the
production or manufacture or any process of production or manufacture of any
excisable goods shall get him registered with the proper officer of excise. Rule 9 of
the Central Excise Rules prescribes specified categories of person liable to take
registration and also provides power to issue notification to exempt certain
categories of persons. Notification No. 35/2001- CE (NT) provides detailed
procedure for taking registration while Notification No 36/2001-CE (NT) exempts
certain categories of persons from taking registration.
The salient features of registration process in general are as below:
 Registration needs to be applied in the prescribed form within 30 days of
commencement of liability to pay duty of excise.
 It needs to be applied online by making application on www.aces.gov.in.
 Separate registration needs to be taken for different premises of same
registered person. If a person is having two or more premises of the same
factory located within a close area in the jurisdiction of a Range
Superintendent, commissioner may allow single registration subject to terms
and conditions as specified.
 Registration is PAN based. The assessee is required to give details of e-mail
ID and phone number.
 Registration is granted within 2 days of the duly completed online
application form.
 Specified documents are required to be submitted at the time of verification
of premise.
 Premise is physically verified by specified officer within seven days of
making application. If premise is found non-existent, registration shall
stand cancelled.
Special provisions for manufacturers of articles of jewellery
It may not be feasible for a jeweler to obtain separate registrations for multiple
workshops. Hence, exemption has been granted to take separate registration and
the concept of centralized registration has been introduced vide Notification No
5/2016-CE (NT). Following options have been provided for registration:
Centralized Registration:The scheme of centralized registration is as below:
 The registration is limited to person engaged in manufacturing of jewellery
falling under chapter heading 7113 only. If a person is manufacturing
articles falling under chapter heading other than 7113, then he is not
entitled to take centralised registration.
 Registration can be taken for premise which has centralised billing or
centralised accounting system in respect of goods falling under 7113
manufactured or produced by different factories or premises.
 In addition to centralised billing or centralised accounting system, it is
necessary to maintain accounts/records showing receipts of raw materials
and finished excisable goods and received from job workers at such premise.
 There is no need to have these units within one Commissionerate. Factories
falling anywhere in the country may be registered within single registration.
 Details need to be given for each of the premises/factories in the application
for centralised registration. However, there is no need to give details of job
work premises.
Centralised registration is not compulsion
It is to be noted that facility of centralized registration is an option not compulsion.
A manufacturer may take separate registration for all factories or premise where
accounts/records showing receipts of raw materials and finished excisable goods
manufactured or received back from job workers are kept. (no need of centralised
accounting/billing system).
Decision making for taking registration
Though above options appear to be very simple but it is very important to
understand the implications arising under each of the options to take final call as
to which option to be chosen.
Place of manufacture vs. place of removal vs. place of registration
These three concepts are very relevant to understand to arrive at particular
options:
 Place of manufacture:This is the place where manufacturing activity is
undertaken. This could be workshop of jeweller. In some cases, showroom
could also be factory where a part of manufacturing process may be
undertaken. If affixing of brand is done at showroom, it would be considered
as factory. Duty needs to be paid at the time of removal of goods from
the place of manufacture.
 Place of removal:This is the place from where goods are sold to customers.
If the goods are directly sold from the workshop, the place of removal is such
workshop. In case manufactured jewellery is brought to showroom and sold
to customer from there, place of removal would be such showroom. Place of
removal is important as the duty needs to be paid at the price prevalent
at place of removal (i.e. showroom) at the time of removal of goods from
the place of manufacture (workshop). In a transaction where place of
manufacture and place of removal is same, there is no complexity.
 Place of registration: A manufacturer may register (i)each of the place of
manufacture separately (ii) register only such places where records
maintained for receipt of raw materials/finished goods and goods received on
from job worker (iii) Centralised registration where centralised billing or
accounting system maintained and records for receipt of raw
material/finished goods maintained. It is needless to mention that this place
could be different from the place of manufacture and/or place of removal.
This place is responsible for making all the compliances under central
excise.
Practical illustration for decision making: A jeweler has corporate office at
Gurgaon. It has regional back offices in 10 states to maintain the track of inventory
within respective state and for internal controlling purpose. Each State has 5-6
showrooms and multiple workshops. The jewellery is manufactured through job
workers also. Software is maintained at Gurgaon office which records movement of
inventory across the country. The software also records inventory movement at
each of the back offices and showroom level also. What are the options for taking
registration?
Option 1:Take registration at Gurgaon covering all the workshops in the country.
Showrooms would be only trading office. The duty needs to be paid at the time of
sending of goods from each of the workshop to showroom at the price prevalent at
showroom. There is no duty liability when goods are sold from the showroom to
customer. In respect of goods lying at the showroom on 29.2.2016, there is no duty
liability as these have already been removed from place of manufacture.
Option 2: Take registration at each of the back office in each state covering all
workshops in that state. The liability to pay duty shall be in the same manner as
discussed above under option 1.
Option 3: Take registration at each of the showroom from where jewellery is
sold to customers giving details of workshops linked to that showroom.
Record is maintained at such place for goods sent to and received from different
workshops. It is suggested to avoid registering the showroom as there could be
complexities in cases of trading, goods sent for approval, exhibition, repair etc. The
showroom should be maintained as duty paid warehouse so that excise
complexities could be minimized.
Option 4:Take separate registration at each of workshop. All the goods removed
from such premise would be duty paid. But this option may not be feasible as it
involves huge compliance cost at large number of workshops.
Option 5: Workshops to be treated as job work units: Under options 1 to 3,
there is need to mention each of workshops where manufacturing process are
undertaken in the registration application. A manufacturer could otherwise
consider each of the workshops as job work premise and if done so there is no need
to mention the workshops in the registration certificate and neither can officer of
central excise make visit to such job work units.
Registration as Input Service Distributor (ISD): Under each of the option, the
manufacturer need to decide as to if any of the unit needs to be registered as input
service distributor to distribute the credit on input service to each of the registered
premise. This become very critical to decide in light of the fact that the many of the
showrooms may be doing trading activities also and there could be need to reverse
the credit under Rule 6 of Cenvat Credit Rules on common input services
attributable to trading turnover/other exempted turnover (silver jewellery etc.)
Incorrect planning could lead to denial of huge credit.
Registration under service tax for reverse charge liability: There could be
service tax liability on jeweller under reverse charge i.e. rent a cab, sponsorship,
import of service, security, works contract etc. There is option of taking separate
registration for each of the premise or centralized registration. The registration
needs to be taken in light of the options evaluated for taking registration under
excise and ISD registration.
Conclusion:As discussed above, there could be multiple possibilities for taking
registrations under excise and service tax depending upon the nature of operations,
number of locations, manner of maintenance of inventory records and similar other
aspects. The complexities is further enhanced where goods manufactured through
job workers along with one’s workshops, doing job work for others, sending the
goods on approval basis, sale return, place of branding, repair of jewellery etc. All
aspects should be carefully evaluated so that there is least compliance complexities
and maximization of credit on input services. For any comments, please write to
paper writers at rajesh@hiregange.com or ashish@hiregange.com

More Related Content

What's hot

Presentation on auditors pdf
Presentation on auditors   pdfPresentation on auditors   pdf
Presentation on auditors pdf
Sooraj Nandan
 
Company audit 3
Company audit 3Company audit 3
Company audit 3
rakeshjiwnani
 
Excise duty registration
Excise duty registrationExcise duty registration
Excise duty registration
P.Ravichandran Chandran
 
Income-tax – Case law updates - V. K. Subramani
Income-tax – Case law updates  - V. K. SubramaniIncome-tax – Case law updates  - V. K. Subramani
Income-tax – Case law updates - V. K. Subramani
D Murali ☆
 
Company audit 1
Company audit  1Company audit  1
Company audit 1
Rizwana Khan
 
Missive - Volume XXVI of May 2013
Missive - Volume XXVI of May 2013Missive - Volume XXVI of May 2013
Missive - Volume XXVI of May 2013
S.P.Nagrath & Co.
 
Company audit
Company auditCompany audit
Company audit
Pramodkumar Yadav
 
Appointment, Removal Resignation of auditors
Appointment, Removal Resignation of auditorsAppointment, Removal Resignation of auditors
Appointment, Removal Resignation of auditors
Manjunath Ganesh
 
IS SECRETARIAL AUDIT MANDATORY FOR FINANCIAL YEAR 2013-14?
IS SECRETARIAL AUDIT MANDATORY FOR FINANCIAL YEAR 2013-14?IS SECRETARIAL AUDIT MANDATORY FOR FINANCIAL YEAR 2013-14?
IS SECRETARIAL AUDIT MANDATORY FOR FINANCIAL YEAR 2013-14?
mystartupvakil.com
 
Appeals in excise duty
Appeals in excise dutyAppeals in excise duty
Appeals in excise duty
P.Ravichandran Chandran
 
Important Questions of Appointment of Auditor
Important Questions of Appointment of AuditorImportant Questions of Appointment of Auditor
Important Questions of Appointment of Auditor
Ankit Agarwal
 
Presentation on Inspection and Investigation under the Companies Act 2013
Presentation on Inspection and Investigation under the Companies Act 2013Presentation on Inspection and Investigation under the Companies Act 2013
Presentation on Inspection and Investigation under the Companies Act 2013
Jaladhi Shukla
 
Appointment and removal of auditor
Appointment and removal of auditorAppointment and removal of auditor
Appointment and removal of auditor
Bharathikukutla
 
Sfio under companies act, 2013 final
Sfio under companies act, 2013 finalSfio under companies act, 2013 final
Sfio under companies act, 2013 final
GAURAV KR SHARMA
 
Excise duty assessment
Excise duty assessmentExcise duty assessment
Excise duty assessment
P.Ravichandran Chandran
 
Discussion on Chapter X - Audit and Auditors under the Companies Act, 2013
Discussion on Chapter X - Audit and Auditors under the Companies Act, 2013Discussion on Chapter X - Audit and Auditors under the Companies Act, 2013
Discussion on Chapter X - Audit and Auditors under the Companies Act, 2013
Manoj Singh Bisht
 
Weekly Tax Newsletter 07-06-2020- N Pahilwani & Associates
Weekly Tax Newsletter  07-06-2020- N Pahilwani & AssociatesWeekly Tax Newsletter  07-06-2020- N Pahilwani & Associates
Weekly Tax Newsletter 07-06-2020- N Pahilwani & Associates
Nitin Pahilwani
 
Quality certification
Quality certificationQuality certification
Quality certification
RepublicGov
 
Business licenses in india
Business licenses in indiaBusiness licenses in india
Business licenses in india
Narendra Pratap
 
Clearance of excisable goods
Clearance of excisable goodsClearance of excisable goods
Clearance of excisable goods
P.Ravichandran Chandran
 

What's hot (20)

Presentation on auditors pdf
Presentation on auditors   pdfPresentation on auditors   pdf
Presentation on auditors pdf
 
Company audit 3
Company audit 3Company audit 3
Company audit 3
 
Excise duty registration
Excise duty registrationExcise duty registration
Excise duty registration
 
Income-tax – Case law updates - V. K. Subramani
Income-tax – Case law updates  - V. K. SubramaniIncome-tax – Case law updates  - V. K. Subramani
Income-tax – Case law updates - V. K. Subramani
 
Company audit 1
Company audit  1Company audit  1
Company audit 1
 
Missive - Volume XXVI of May 2013
Missive - Volume XXVI of May 2013Missive - Volume XXVI of May 2013
Missive - Volume XXVI of May 2013
 
Company audit
Company auditCompany audit
Company audit
 
Appointment, Removal Resignation of auditors
Appointment, Removal Resignation of auditorsAppointment, Removal Resignation of auditors
Appointment, Removal Resignation of auditors
 
IS SECRETARIAL AUDIT MANDATORY FOR FINANCIAL YEAR 2013-14?
IS SECRETARIAL AUDIT MANDATORY FOR FINANCIAL YEAR 2013-14?IS SECRETARIAL AUDIT MANDATORY FOR FINANCIAL YEAR 2013-14?
IS SECRETARIAL AUDIT MANDATORY FOR FINANCIAL YEAR 2013-14?
 
Appeals in excise duty
Appeals in excise dutyAppeals in excise duty
Appeals in excise duty
 
Important Questions of Appointment of Auditor
Important Questions of Appointment of AuditorImportant Questions of Appointment of Auditor
Important Questions of Appointment of Auditor
 
Presentation on Inspection and Investigation under the Companies Act 2013
Presentation on Inspection and Investigation under the Companies Act 2013Presentation on Inspection and Investigation under the Companies Act 2013
Presentation on Inspection and Investigation under the Companies Act 2013
 
Appointment and removal of auditor
Appointment and removal of auditorAppointment and removal of auditor
Appointment and removal of auditor
 
Sfio under companies act, 2013 final
Sfio under companies act, 2013 finalSfio under companies act, 2013 final
Sfio under companies act, 2013 final
 
Excise duty assessment
Excise duty assessmentExcise duty assessment
Excise duty assessment
 
Discussion on Chapter X - Audit and Auditors under the Companies Act, 2013
Discussion on Chapter X - Audit and Auditors under the Companies Act, 2013Discussion on Chapter X - Audit and Auditors under the Companies Act, 2013
Discussion on Chapter X - Audit and Auditors under the Companies Act, 2013
 
Weekly Tax Newsletter 07-06-2020- N Pahilwani & Associates
Weekly Tax Newsletter  07-06-2020- N Pahilwani & AssociatesWeekly Tax Newsletter  07-06-2020- N Pahilwani & Associates
Weekly Tax Newsletter 07-06-2020- N Pahilwani & Associates
 
Quality certification
Quality certificationQuality certification
Quality certification
 
Business licenses in india
Business licenses in indiaBusiness licenses in india
Business licenses in india
 
Clearance of excisable goods
Clearance of excisable goodsClearance of excisable goods
Clearance of excisable goods
 

Similar to Registration by Jeweler under Excise - A Thoughhtful Decision

Excise registration
Excise registrationExcise registration
Excise registration
CA-Amit
 
Manual zonas francas_ingles
Manual zonas francas_inglesManual zonas francas_ingles
Manual zonas francas_ingles
ProColombia
 
Excise law
Excise lawExcise law
Excise law
Vaibhav Gupta
 
SEZ
SEZSEZ
Special provisions of presumptive taxation under income tax act 1961
Special provisions of presumptive taxation under income tax act 1961Special provisions of presumptive taxation under income tax act 1961
Special provisions of presumptive taxation under income tax act 1961
MVSARMA1
 
Cin india-localization sd-workshop
Cin india-localization sd-workshopCin india-localization sd-workshop
Cin india-localization sd-workshop
sristick
 
GOODS AND SERVICES TAX REGISTRATION PART 1.pdf
GOODS AND SERVICES TAX REGISTRATION PART 1.pdfGOODS AND SERVICES TAX REGISTRATION PART 1.pdf
GOODS AND SERVICES TAX REGISTRATION PART 1.pdf
gstambattur50
 
Revenue Regulation No. 7-2012
Revenue Regulation No. 7-2012Revenue Regulation No. 7-2012
Revenue Regulation No. 7-2012
pinoytaxman
 
WB VAT ACT, 2003
WB VAT ACT, 2003WB VAT ACT, 2003
WB VAT ACT, 2003
Anup Kajoria
 
Maharashtra VAT ( Sales Tax) overview
Maharashtra VAT ( Sales Tax) overviewMaharashtra VAT ( Sales Tax) overview
Maharashtra VAT ( Sales Tax) overview
Jenish Vira
 
Sap sd-cin-document[1]
Sap sd-cin-document[1]Sap sd-cin-document[1]
Sap sd-cin-document[1]
Mohit Rajvanshi
 
52984075 registration-procedure-under-central-sales-act-section
52984075 registration-procedure-under-central-sales-act-section52984075 registration-procedure-under-central-sales-act-section
52984075 registration-procedure-under-central-sales-act-section
Dr. Ravneet Kaur
 
India localization with respect to india
India localization with respect to indiaIndia localization with respect to india
India localization with respect to india
Anandkumar KS
 
Note_8__Tax_Planning_for_companies.pdf
Note_8__Tax_Planning_for_companies.pdfNote_8__Tax_Planning_for_companies.pdf
Note_8__Tax_Planning_for_companies.pdf
2022452932
 
Registration Process
Registration ProcessRegistration Process
Registration Process
Chidurala Kapil
 
MOOWR SCHEME, 2019.pptx
MOOWR SCHEME, 2019.pptxMOOWR SCHEME, 2019.pptx
MOOWR SCHEME, 2019.pptx
AmitAgrawal619126
 
Impact of Stock Market Transactions in Our Income Tax Return
Impact of Stock Market Transactions in Our Income Tax ReturnImpact of Stock Market Transactions in Our Income Tax Return
Impact of Stock Market Transactions in Our Income Tax Return
CA Shiv Kumar Sharma
 
20 excise for dealers
20 excise for dealers20 excise for dealers
20 excise for dealers
MD. Monzurul Karim Shanchay
 
Company incorporation in india
Company incorporation in indiaCompany incorporation in india
Company incorporation in india
Vakilsearch
 
Taxable person
Taxable personTaxable person
Taxable person
Ankita Gupta
 

Similar to Registration by Jeweler under Excise - A Thoughhtful Decision (20)

Excise registration
Excise registrationExcise registration
Excise registration
 
Manual zonas francas_ingles
Manual zonas francas_inglesManual zonas francas_ingles
Manual zonas francas_ingles
 
Excise law
Excise lawExcise law
Excise law
 
SEZ
SEZSEZ
SEZ
 
Special provisions of presumptive taxation under income tax act 1961
Special provisions of presumptive taxation under income tax act 1961Special provisions of presumptive taxation under income tax act 1961
Special provisions of presumptive taxation under income tax act 1961
 
Cin india-localization sd-workshop
Cin india-localization sd-workshopCin india-localization sd-workshop
Cin india-localization sd-workshop
 
GOODS AND SERVICES TAX REGISTRATION PART 1.pdf
GOODS AND SERVICES TAX REGISTRATION PART 1.pdfGOODS AND SERVICES TAX REGISTRATION PART 1.pdf
GOODS AND SERVICES TAX REGISTRATION PART 1.pdf
 
Revenue Regulation No. 7-2012
Revenue Regulation No. 7-2012Revenue Regulation No. 7-2012
Revenue Regulation No. 7-2012
 
WB VAT ACT, 2003
WB VAT ACT, 2003WB VAT ACT, 2003
WB VAT ACT, 2003
 
Maharashtra VAT ( Sales Tax) overview
Maharashtra VAT ( Sales Tax) overviewMaharashtra VAT ( Sales Tax) overview
Maharashtra VAT ( Sales Tax) overview
 
Sap sd-cin-document[1]
Sap sd-cin-document[1]Sap sd-cin-document[1]
Sap sd-cin-document[1]
 
52984075 registration-procedure-under-central-sales-act-section
52984075 registration-procedure-under-central-sales-act-section52984075 registration-procedure-under-central-sales-act-section
52984075 registration-procedure-under-central-sales-act-section
 
India localization with respect to india
India localization with respect to indiaIndia localization with respect to india
India localization with respect to india
 
Note_8__Tax_Planning_for_companies.pdf
Note_8__Tax_Planning_for_companies.pdfNote_8__Tax_Planning_for_companies.pdf
Note_8__Tax_Planning_for_companies.pdf
 
Registration Process
Registration ProcessRegistration Process
Registration Process
 
MOOWR SCHEME, 2019.pptx
MOOWR SCHEME, 2019.pptxMOOWR SCHEME, 2019.pptx
MOOWR SCHEME, 2019.pptx
 
Impact of Stock Market Transactions in Our Income Tax Return
Impact of Stock Market Transactions in Our Income Tax ReturnImpact of Stock Market Transactions in Our Income Tax Return
Impact of Stock Market Transactions in Our Income Tax Return
 
20 excise for dealers
20 excise for dealers20 excise for dealers
20 excise for dealers
 
Company incorporation in india
Company incorporation in indiaCompany incorporation in india
Company incorporation in india
 
Taxable person
Taxable personTaxable person
Taxable person
 

More from Ashish Chaudhary

Human life is property ?
Human life is property ? Human life is property ?
Human life is property ?
Ashish Chaudhary
 
GST classification of Hand Sanitizer
GST classification of Hand SanitizerGST classification of Hand Sanitizer
GST classification of Hand Sanitizer
Ashish Chaudhary
 
FAQ on Annual Returns under GST
FAQ on Annual Returns under GSTFAQ on Annual Returns under GST
FAQ on Annual Returns under GST
Ashish Chaudhary
 
GST update 27th july 2018
GST update 27th july 2018GST update 27th july 2018
GST update 27th july 2018
Ashish Chaudhary
 
Bird eye view of vat in uae
Bird eye view of vat in uaeBird eye view of vat in uae
Bird eye view of vat in uae
Ashish Chaudhary
 
Indirect Tax_Latest Judicial Precedents_ October 2016
Indirect Tax_Latest Judicial Precedents_ October 2016Indirect Tax_Latest Judicial Precedents_ October 2016
Indirect Tax_Latest Judicial Precedents_ October 2016
Ashish Chaudhary
 
Indirect tax judicial precedents september 2016 (1)
Indirect tax judicial precedents  september 2016 (1)Indirect tax judicial precedents  september 2016 (1)
Indirect tax judicial precedents september 2016 (1)
Ashish Chaudhary
 
Indirect Tax Judicial Precedents August 2016
Indirect Tax Judicial Precedents August 2016Indirect Tax Judicial Precedents August 2016
Indirect Tax Judicial Precedents August 2016
Ashish Chaudhary
 
Indirect Tax_ Latest Judicial Precedents July 2016
Indirect Tax_ Latest Judicial Precedents July 2016Indirect Tax_ Latest Judicial Precedents July 2016
Indirect Tax_ Latest Judicial Precedents July 2016
Ashish Chaudhary
 
Gst Model Act - Important things to know
Gst Model Act - Important things to knowGst Model Act - Important things to know
Gst Model Act - Important things to know
Ashish Chaudhary
 
Indirect tax judicial precedents june 2016
Indirect tax judicial precedents june 2016Indirect tax judicial precedents june 2016
Indirect tax judicial precedents june 2016
Ashish Chaudhary
 
Excise duty on branded readymade garments
Excise duty on branded readymade garmentsExcise duty on branded readymade garments
Excise duty on branded readymade garments
Ashish Chaudhary
 
Information return precautions by mfg and service providers
Information return precautions by mfg and service providersInformation return precautions by mfg and service providers
Information return precautions by mfg and service providers
Ashish Chaudhary
 
Salient features of model gst act
Salient features of model gst actSalient features of model gst act
Salient features of model gst act
Ashish Chaudhary
 
Indirect tax latest judicial precedents december 2015
Indirect tax latest judicial precedents  december 2015Indirect tax latest judicial precedents  december 2015
Indirect tax latest judicial precedents december 2015
Ashish Chaudhary
 

More from Ashish Chaudhary (15)

Human life is property ?
Human life is property ? Human life is property ?
Human life is property ?
 
GST classification of Hand Sanitizer
GST classification of Hand SanitizerGST classification of Hand Sanitizer
GST classification of Hand Sanitizer
 
FAQ on Annual Returns under GST
FAQ on Annual Returns under GSTFAQ on Annual Returns under GST
FAQ on Annual Returns under GST
 
GST update 27th july 2018
GST update 27th july 2018GST update 27th july 2018
GST update 27th july 2018
 
Bird eye view of vat in uae
Bird eye view of vat in uaeBird eye view of vat in uae
Bird eye view of vat in uae
 
Indirect Tax_Latest Judicial Precedents_ October 2016
Indirect Tax_Latest Judicial Precedents_ October 2016Indirect Tax_Latest Judicial Precedents_ October 2016
Indirect Tax_Latest Judicial Precedents_ October 2016
 
Indirect tax judicial precedents september 2016 (1)
Indirect tax judicial precedents  september 2016 (1)Indirect tax judicial precedents  september 2016 (1)
Indirect tax judicial precedents september 2016 (1)
 
Indirect Tax Judicial Precedents August 2016
Indirect Tax Judicial Precedents August 2016Indirect Tax Judicial Precedents August 2016
Indirect Tax Judicial Precedents August 2016
 
Indirect Tax_ Latest Judicial Precedents July 2016
Indirect Tax_ Latest Judicial Precedents July 2016Indirect Tax_ Latest Judicial Precedents July 2016
Indirect Tax_ Latest Judicial Precedents July 2016
 
Gst Model Act - Important things to know
Gst Model Act - Important things to knowGst Model Act - Important things to know
Gst Model Act - Important things to know
 
Indirect tax judicial precedents june 2016
Indirect tax judicial precedents june 2016Indirect tax judicial precedents june 2016
Indirect tax judicial precedents june 2016
 
Excise duty on branded readymade garments
Excise duty on branded readymade garmentsExcise duty on branded readymade garments
Excise duty on branded readymade garments
 
Information return precautions by mfg and service providers
Information return precautions by mfg and service providersInformation return precautions by mfg and service providers
Information return precautions by mfg and service providers
 
Salient features of model gst act
Salient features of model gst actSalient features of model gst act
Salient features of model gst act
 
Indirect tax latest judicial precedents december 2015
Indirect tax latest judicial precedents  december 2015Indirect tax latest judicial precedents  december 2015
Indirect tax latest judicial precedents december 2015
 

Recently uploaded

MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
Dr. Oliver Massmann
 
Kairos Legal Advisors_Capital Raising Compliance .pdf
Kairos Legal Advisors_Capital Raising Compliance .pdfKairos Legal Advisors_Capital Raising Compliance .pdf
Kairos Legal Advisors_Capital Raising Compliance .pdf
Kairos Capital Legal Advisors,LLC
 
Bristol degree offer diploma Transcript
Bristol degree offer diploma TranscriptBristol degree offer diploma Transcript
Bristol degree offer diploma Transcript
geesuk
 
Bank Secrecy Act of the Philippines.pptx
Bank Secrecy Act of the Philippines.pptxBank Secrecy Act of the Philippines.pptx
Bank Secrecy Act of the Philippines.pptx
Cyrish2
 
Law-Commission-Report-267-on-Hate-Speech.pdf
Law-Commission-Report-267-on-Hate-Speech.pdfLaw-Commission-Report-267-on-Hate-Speech.pdf
Law-Commission-Report-267-on-Hate-Speech.pdf
bhavenpr
 
case laws.pdf professional ethics and legal
case laws.pdf professional ethics and legalcase laws.pdf professional ethics and legal
case laws.pdf professional ethics and legal
ALEENAJOSHY5
 
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie LondonDallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
ReggieLondon Lawyer
 
Buckingham degree offer diploma Transcript
Buckingham degree offer diploma TranscriptBuckingham degree offer diploma Transcript
Buckingham degree offer diploma Transcript
geesuk
 
Monash University degree offer diploma Transcript
Monash University degree offer diploma TranscriptMonash University degree offer diploma Transcript
Monash University degree offer diploma Transcript
qgoomz
 
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
AHRP Law Firm
 
UofT biyezheng degree offer diploma Transcript
UofT biyezheng degree offer diploma TranscriptUofT biyezheng degree offer diploma Transcript
UofT biyezheng degree offer diploma Transcript
qpeqmso
 
BCU degree offer diploma Transcript
BCU degree offer diploma TranscriptBCU degree offer diploma Transcript
BCU degree offer diploma Transcript
pehqgou
 
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
Paisley Law LLC
 
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
Knowyourright
 
Here's the Latest Todd Rokita Grievance That was Filed
Here's the Latest Todd Rokita Grievance  That was FiledHere's the Latest Todd Rokita Grievance  That was Filed
Here's the Latest Todd Rokita Grievance That was Filed
Abdul-Hakim Shabazz
 
The Art Institute of California degree offer diploma Transcript
The Art Institute of California degree offer diploma TranscriptThe Art Institute of California degree offer diploma Transcript
The Art Institute of California degree offer diploma Transcript
qgoomz
 
Untitled document criminal history page.pdf
Untitled document criminal history page.pdfUntitled document criminal history page.pdf
Untitled document criminal history page.pdf
braydenstoch777
 
cyber law and ethics regulation of the connected world
cyber law and ethics regulation of the connected worldcyber law and ethics regulation of the connected world
cyber law and ethics regulation of the connected world
JeneferAlan1
 
Trademark Search & Filing LA Secure Brand
Trademark Search & Filing LA Secure BrandTrademark Search & Filing LA Secure Brand
Trademark Search & Filing LA Secure Brand
Trademark Quick
 
Hindu Marriage Act hhhjjdsruog, 1955.pdf
Hindu Marriage Act hhhjjdsruog, 1955.pdfHindu Marriage Act hhhjjdsruog, 1955.pdf
Hindu Marriage Act hhhjjdsruog, 1955.pdf
mayurpandit108
 

Recently uploaded (20)

MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
MAKING LARGE-SCALE SOLAR PROJECTS VIABLE IN VIETNAM: INNOVATIVE APPROACHES IN...
 
Kairos Legal Advisors_Capital Raising Compliance .pdf
Kairos Legal Advisors_Capital Raising Compliance .pdfKairos Legal Advisors_Capital Raising Compliance .pdf
Kairos Legal Advisors_Capital Raising Compliance .pdf
 
Bristol degree offer diploma Transcript
Bristol degree offer diploma TranscriptBristol degree offer diploma Transcript
Bristol degree offer diploma Transcript
 
Bank Secrecy Act of the Philippines.pptx
Bank Secrecy Act of the Philippines.pptxBank Secrecy Act of the Philippines.pptx
Bank Secrecy Act of the Philippines.pptx
 
Law-Commission-Report-267-on-Hate-Speech.pdf
Law-Commission-Report-267-on-Hate-Speech.pdfLaw-Commission-Report-267-on-Hate-Speech.pdf
Law-Commission-Report-267-on-Hate-Speech.pdf
 
case laws.pdf professional ethics and legal
case laws.pdf professional ethics and legalcase laws.pdf professional ethics and legal
case laws.pdf professional ethics and legal
 
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie LondonDallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
Dallas Criminal Attorney | Frisco Criminal Attorney- Reggie London
 
Buckingham degree offer diploma Transcript
Buckingham degree offer diploma TranscriptBuckingham degree offer diploma Transcript
Buckingham degree offer diploma Transcript
 
Monash University degree offer diploma Transcript
Monash University degree offer diploma TranscriptMonash University degree offer diploma Transcript
Monash University degree offer diploma Transcript
 
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
Exploring Maternal and Child Welfare in accordance with Law Number 4 of 2024 ...
 
UofT biyezheng degree offer diploma Transcript
UofT biyezheng degree offer diploma TranscriptUofT biyezheng degree offer diploma Transcript
UofT biyezheng degree offer diploma Transcript
 
BCU degree offer diploma Transcript
BCU degree offer diploma TranscriptBCU degree offer diploma Transcript
BCU degree offer diploma Transcript
 
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
PERSONAL INJURY LAW: EVERYTHING YOU NEED TO KNOW IN 2024
 
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
SiebenCarey Sponsors First Social Justice On Tap Fundraiser for the Southern ...
 
Here's the Latest Todd Rokita Grievance That was Filed
Here's the Latest Todd Rokita Grievance  That was FiledHere's the Latest Todd Rokita Grievance  That was Filed
Here's the Latest Todd Rokita Grievance That was Filed
 
The Art Institute of California degree offer diploma Transcript
The Art Institute of California degree offer diploma TranscriptThe Art Institute of California degree offer diploma Transcript
The Art Institute of California degree offer diploma Transcript
 
Untitled document criminal history page.pdf
Untitled document criminal history page.pdfUntitled document criminal history page.pdf
Untitled document criminal history page.pdf
 
cyber law and ethics regulation of the connected world
cyber law and ethics regulation of the connected worldcyber law and ethics regulation of the connected world
cyber law and ethics regulation of the connected world
 
Trademark Search & Filing LA Secure Brand
Trademark Search & Filing LA Secure BrandTrademark Search & Filing LA Secure Brand
Trademark Search & Filing LA Secure Brand
 
Hindu Marriage Act hhhjjdsruog, 1955.pdf
Hindu Marriage Act hhhjjdsruog, 1955.pdfHindu Marriage Act hhhjjdsruog, 1955.pdf
Hindu Marriage Act hhhjjdsruog, 1955.pdf
 

Registration by Jeweler under Excise - A Thoughhtful Decision

  • 1. Registration under excise by jeweler: A Thoughtful Decision CA Rajesh Kumar T R; CA Ashish Chaudhary Background Registration with tax authorities is first step for any assessee to make compliance with the law and similar is the case for jewelers who have been brought within excise ambit in Budget 2016-17. But it is very interesting that special provisions have been made for registration of person engaged in manufacturing of jewellery under excise and these provisions could sometime offer tremendous planning opportunities to optimize the tax liability. The paper writers have discussed few of such aspects in the article. Provisions for registration under central excise: Section 6 of the Central Excise Act provides that every person engaged in the production or manufacture or any process of production or manufacture of any excisable goods shall get him registered with the proper officer of excise. Rule 9 of the Central Excise Rules prescribes specified categories of person liable to take registration and also provides power to issue notification to exempt certain categories of persons. Notification No. 35/2001- CE (NT) provides detailed procedure for taking registration while Notification No 36/2001-CE (NT) exempts certain categories of persons from taking registration. The salient features of registration process in general are as below:  Registration needs to be applied in the prescribed form within 30 days of commencement of liability to pay duty of excise.  It needs to be applied online by making application on www.aces.gov.in.  Separate registration needs to be taken for different premises of same registered person. If a person is having two or more premises of the same factory located within a close area in the jurisdiction of a Range Superintendent, commissioner may allow single registration subject to terms and conditions as specified.  Registration is PAN based. The assessee is required to give details of e-mail ID and phone number.  Registration is granted within 2 days of the duly completed online application form.
  • 2.  Specified documents are required to be submitted at the time of verification of premise.  Premise is physically verified by specified officer within seven days of making application. If premise is found non-existent, registration shall stand cancelled. Special provisions for manufacturers of articles of jewellery It may not be feasible for a jeweler to obtain separate registrations for multiple workshops. Hence, exemption has been granted to take separate registration and the concept of centralized registration has been introduced vide Notification No 5/2016-CE (NT). Following options have been provided for registration: Centralized Registration:The scheme of centralized registration is as below:  The registration is limited to person engaged in manufacturing of jewellery falling under chapter heading 7113 only. If a person is manufacturing articles falling under chapter heading other than 7113, then he is not entitled to take centralised registration.  Registration can be taken for premise which has centralised billing or centralised accounting system in respect of goods falling under 7113 manufactured or produced by different factories or premises.  In addition to centralised billing or centralised accounting system, it is necessary to maintain accounts/records showing receipts of raw materials and finished excisable goods and received from job workers at such premise.  There is no need to have these units within one Commissionerate. Factories falling anywhere in the country may be registered within single registration.  Details need to be given for each of the premises/factories in the application for centralised registration. However, there is no need to give details of job work premises. Centralised registration is not compulsion It is to be noted that facility of centralized registration is an option not compulsion. A manufacturer may take separate registration for all factories or premise where accounts/records showing receipts of raw materials and finished excisable goods manufactured or received back from job workers are kept. (no need of centralised accounting/billing system).
  • 3. Decision making for taking registration Though above options appear to be very simple but it is very important to understand the implications arising under each of the options to take final call as to which option to be chosen. Place of manufacture vs. place of removal vs. place of registration These three concepts are very relevant to understand to arrive at particular options:  Place of manufacture:This is the place where manufacturing activity is undertaken. This could be workshop of jeweller. In some cases, showroom could also be factory where a part of manufacturing process may be undertaken. If affixing of brand is done at showroom, it would be considered as factory. Duty needs to be paid at the time of removal of goods from the place of manufacture.  Place of removal:This is the place from where goods are sold to customers. If the goods are directly sold from the workshop, the place of removal is such workshop. In case manufactured jewellery is brought to showroom and sold to customer from there, place of removal would be such showroom. Place of removal is important as the duty needs to be paid at the price prevalent at place of removal (i.e. showroom) at the time of removal of goods from the place of manufacture (workshop). In a transaction where place of manufacture and place of removal is same, there is no complexity.  Place of registration: A manufacturer may register (i)each of the place of manufacture separately (ii) register only such places where records maintained for receipt of raw materials/finished goods and goods received on from job worker (iii) Centralised registration where centralised billing or accounting system maintained and records for receipt of raw material/finished goods maintained. It is needless to mention that this place could be different from the place of manufacture and/or place of removal. This place is responsible for making all the compliances under central excise. Practical illustration for decision making: A jeweler has corporate office at Gurgaon. It has regional back offices in 10 states to maintain the track of inventory within respective state and for internal controlling purpose. Each State has 5-6 showrooms and multiple workshops. The jewellery is manufactured through job
  • 4. workers also. Software is maintained at Gurgaon office which records movement of inventory across the country. The software also records inventory movement at each of the back offices and showroom level also. What are the options for taking registration? Option 1:Take registration at Gurgaon covering all the workshops in the country. Showrooms would be only trading office. The duty needs to be paid at the time of sending of goods from each of the workshop to showroom at the price prevalent at showroom. There is no duty liability when goods are sold from the showroom to customer. In respect of goods lying at the showroom on 29.2.2016, there is no duty liability as these have already been removed from place of manufacture. Option 2: Take registration at each of the back office in each state covering all workshops in that state. The liability to pay duty shall be in the same manner as discussed above under option 1. Option 3: Take registration at each of the showroom from where jewellery is sold to customers giving details of workshops linked to that showroom. Record is maintained at such place for goods sent to and received from different workshops. It is suggested to avoid registering the showroom as there could be complexities in cases of trading, goods sent for approval, exhibition, repair etc. The showroom should be maintained as duty paid warehouse so that excise complexities could be minimized. Option 4:Take separate registration at each of workshop. All the goods removed from such premise would be duty paid. But this option may not be feasible as it involves huge compliance cost at large number of workshops. Option 5: Workshops to be treated as job work units: Under options 1 to 3, there is need to mention each of workshops where manufacturing process are undertaken in the registration application. A manufacturer could otherwise consider each of the workshops as job work premise and if done so there is no need to mention the workshops in the registration certificate and neither can officer of central excise make visit to such job work units.
  • 5. Registration as Input Service Distributor (ISD): Under each of the option, the manufacturer need to decide as to if any of the unit needs to be registered as input service distributor to distribute the credit on input service to each of the registered premise. This become very critical to decide in light of the fact that the many of the showrooms may be doing trading activities also and there could be need to reverse the credit under Rule 6 of Cenvat Credit Rules on common input services attributable to trading turnover/other exempted turnover (silver jewellery etc.) Incorrect planning could lead to denial of huge credit. Registration under service tax for reverse charge liability: There could be service tax liability on jeweller under reverse charge i.e. rent a cab, sponsorship, import of service, security, works contract etc. There is option of taking separate registration for each of the premise or centralized registration. The registration needs to be taken in light of the options evaluated for taking registration under excise and ISD registration. Conclusion:As discussed above, there could be multiple possibilities for taking registrations under excise and service tax depending upon the nature of operations, number of locations, manner of maintenance of inventory records and similar other aspects. The complexities is further enhanced where goods manufactured through job workers along with one’s workshops, doing job work for others, sending the goods on approval basis, sale return, place of branding, repair of jewellery etc. All aspects should be carefully evaluated so that there is least compliance complexities and maximization of credit on input services. For any comments, please write to paper writers at rajesh@hiregange.com or ashish@hiregange.com