| Date: |
10-09-2014 |
| Subject: |
Diamond units face Rs 150 crore duty on imported tools |
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SURAT: Diamantaires in the world's biggest diamond cutting and polishing centre in Surat, who had imported state-of-the-art technology for diamond cutting and polishing, may have to cough up over Rs 150 crore in duty.
The customs and central excise department is planning to swoop down on diamond units for the recovery of outstanding import duty on machines and equipment imported from Israel, Antwerp and China.
Surat boasts of large factories equipped with sophisticated machines. In fact, Surat's progression to process bigger stones better and at much cheaper price is considered to be the reason for the downfall of cutting industry in Israel and Antwerp. Quick in absorbing newest technology, Indian diamantaires are always on the lookout for bettering their manufacturing process and training their workers.
Industry sources said big companies import computerized equipment for diamond planning, laser marking, spectroscopy, m-box planning etc, which require specialized software that had been developed by foreign companies. The imported equipment and machinery attract 22 per cent duty. The custom department has decided to collect import duty on the software used in hi-tech machines too.
Recently, the department issued notices to the diamond companies that had imported computerized equipment for diamond cutting and polishing, asking them to pay import duty on the software.
Surat Diamond Association president Dinesh Navadia said, "The customs department has notified the diamond companies that they are liable to pay duty on the software imported from foreign countries. Till now, the customs duty was payable on the hardware of the hi-tech machines. We have decided to approach Central Board of Direct Taxes with request to spare the diamond companies from paying import duty on the software."
"Most of the equipment imported in the diamond sector are computer-based, which require special softwares. The department feels the diamond companies are liable to pay import duty on the software as well," said custom officer.
Source : timesofindia.indiatimes.com
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