Lok Sabha has approved the Finance Bill 2016 with minor changes . However, it has seen the withdrawal of the proposal to tax the withdrawal of provident fund.
However, the levy of duty on jewellery has been reatined . The excise duty proposed is at rate of 1% without input tax credit and 12.5% with input tax credit on articles of jewellery with an exception for silver jewellery .
It is pertinent to note that the levy of duty will be only on those jewellers whose turnover was more than Rs.12 crore in the previous financial year. Hence, small jewellers will be outside the purview of excise .
The Finane Bill 2016 is yet to get the assent from President of India . Usually , the date of assent from the President varies between 9 to 12 May of every year .