CBEC introduces lump-sum tax on gutkha manufacturers
According to an estimate, paan and gutka masala units are indulging in tax evasion of around Rs 1,800 crore annually.
By PTI |
NEW DELHI: The government on Wednesday introduced lump-sum tax scheme for pan masala and gutkha manufacturing units under which they can deposit up to Rs 12 lakh a month as tax per packaging machine, a move aimed at checking tax evasion by them.
"This scheme is a part of the strategy of the indirect tax administration to encourage voluntary tax compliance, and provides a sharp and uncompromising response to non-compliance," said a statement released by the Central Board of Excise and Customs (CBEC).
According to an estimate, paan and gutka masala units are indulging in tax evasion of around Rs 1,800 crore annually.
The statement said under the optional compounding scheme, the pan masala and gutkha manufacturers could pay taxes on the basis of number of packing machines installed on the factory premises.
"The scheme has been introduced under Rule 15 of the Central Excise Rules, 2002", the statement said.
The manufacturers of gutkha would be required to pay Rs 12 lakh as duty per month on every machine churning out pouches with retail price up to Rs 1.50. Similarly, for manufacturers of pan masala, the duty on every manufacturing machine has been fixed at Rs 10 lakh.
If the manufacturer opts for the scheme, there would be no inspection or search of his factory, the board added.
"This scheme is a part of the strategy of the indirect tax administration to encourage voluntary tax compliance, and provides a sharp and uncompromising response to non-compliance," said a statement released by the Central Board of Excise and Customs (CBEC).
According to an estimate, paan and gutka masala units are indulging in tax evasion of around Rs 1,800 crore annually.
The statement said under the optional compounding scheme, the pan masala and gutkha manufacturers could pay taxes on the basis of number of packing machines installed on the factory premises.
"The scheme has been introduced under Rule 15 of the Central Excise Rules, 2002", the statement said.
The manufacturers of gutkha would be required to pay Rs 12 lakh as duty per month on every machine churning out pouches with retail price up to Rs 1.50. Similarly, for manufacturers of pan masala, the duty on every manufacturing machine has been fixed at Rs 10 lakh.
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If the manufacturer opts for the scheme, there would be no inspection or search of his factory, the board added.
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