The Gem & Jewellery Export Promotion Council (GJEPC) in co-ordination with the Income Tax Department of the Government of India organised a seminar on the importance and modalities of the ‘Tax Deducted at Source’ scheme. The meeting, which was held at the SG Jhaveri Trading Hall in Bharat Diamond Bourse on August 27, was attended by members of the industry from GJEPC and BDB as well as government officials.

The main presentation was given by Dr. Darsi Suman Ratnam, Jt. Commissioner of Income Tax who stressed the importance of the Tax Deductor and the help they provide to the government. He highlighted the fact that only 3.5 crore out of 120 crore people in India are registered tax payers. Hence, he said, TDS plays a crucial role in helping to avoid tax evasion and ensure a regular income to the government. He concluded with an appeal to all present to “be a responsible deductor for the government”.

Well known Chartered Accountant Nilesh Kapadia expressed his appreciation of the fact that the government had adotped a PPP model to help tax deductors and mentioned that over 40% of tax revenue accrues to the government through TDS. He thereafter threw some light on TDS provisions and latest amendments, including TDS on RD accounts etc.

He also pointed out that TDS of 1% should be collected on cash sale of bullion exceeding Rs. 2,00,000/- and cash sale of jewellery  exceeding Rs.5,00,000/- in a single transaction. He explained that the TDS so collected and deposited with the government would enable the administration to keep track of such transactions. Moreover the customer from whom this TDS was collected was eligible to claim the amount against their income tax liability. Dr. Ratnam also commented that currently only a few jewellers are collecting these amounts and requested co-operation from the industry to raise TDS collection from cash sales of bullion/jewellery.

NSDL representative Mr. Deepak explained some of the basics of preparing TDS returns statements and stressed that the facts of the statement filed should be doubly checked to avoid errors. He also informed that any notice and demands could not be dealt with by the income tax authorities nor through Traces, but has to be dealt with directly through the tax deductor. All errors can be rectified by the deductor only. He also gave examples of correction statements.

Before responding to queries, Nilesh Kapadia gave some practical tips on how delays could be avoided in filling returns.

Most of the questions from the participants were with regard to filing of 15 CA/ 15 CB by the importers which they said is very cumbersome due to the large volume of transactions in the industry. Kapadia suggested that a representation could be made by the industry to the finance ministry on this issue. Thereafter, he replied to many other queries along with Ravi Rajan who helped in replying to some technical matters related to Traces.

Vote of thanks was given by Ms. Jitarani Udgata, GJEPC who appreciated the presentations by the dignitaries and speakers and thanked members for their cooperation and participation.

Pic Caption: TDS seminar in progress