50
th
ANNUAL REPORT 2015-2016 THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL
108
22.
Contingent Liabilities:
Particulars
2015-2016
Rupees
2014-2015
Rupees
Compensation payable
to Brand Ambassador
Nil
80,00,000
Claims by Employees/
Ex-employees of the
Council, pending in legal
suits
Not
ascertained
Not ascertained
Bank Guarantees
Outstanding
1,80,07,435 1,80,07,435
Income-Tax Demands
disputed in appeals
13,30,84,827 6,32,05,900
(e) The Commissioner of Central Excise, Thane II, has
determined and confirmed demand of Service Tax
and has imposed penalties as under:
Particulars
2015-2016
Rupees
2014-2015
Rupees
F.Y.2005-06 TO
2010-11
Service Tax
12,05,15,496 12,05,15,496
Penalty
12,15,15,496 12,15,15,496
F.Y. 2011-12
Service Tax
2,70,25,001
2,70,25,001
Penalty
10,000
10,000
Interest on above
77,93,355
77,93,355
Total
27,68,59,348 27,68,59,348
The Council has preferred appeals before the Appellate
Tribunal against the Orders imposing the above
liabilities. The Council has also deposited a sum of
Rs.1,10,65,583/- as “Service tax paid under Protest”.
The liability if any, in respect of the above will be accounted
for when confirmed/upheld by the Appellate Tribunal.
(f) Estimated amount of contracts remaining to be executed
on Capital account and not provided for (net of advances):
NIL (2014-2015: Rs. 5.91 Lakhs)
23.
(1)
In terms of legal opinions obtained by the
Council, the Entertainment Duty under the
Entertainment Duty Bombay, Act 1923 (the
Act) is not leviable in respect of the exhibitions
being organized by the Council as such
exhibitions are purely ‘Trade Shows’ and not
‘Entertainment’ within the meaning of Section
2(a) of the Act.
(2)
However, the Hon’ble Bombay High Court
by its order dated 4
th
March, 2013 has
dismissed the writ petition filed by the Council
and has upheld the validity of the levy of the
Entertainment Duty.
(3)
The Council has preferred Special Leave
Petition (SLP) before the Hon’ble Supreme
Court against this Order and the Leave has
been granted. The matter is pending before
the Hon’ble Supreme Court.
(4) Pending, the matter before the Hon’ble
Supreme Court a sum of Rs. 41,68,958/- in
respect of India International Jewellery Show
(IIJS), 2015 and a sum of Rs. 15,94,916 in
respect of Signature IIJS, 2016 Show as
determined on the lines of the aforesaid Order
have been debited to the Statement of Income
& Expenditure for the year.
24.
The Hon’ble Bombay High Court and Income-tax
Appellate Tribunal, Mumbai Benches, in the case of
the Council in earlier years, have held that the Income
of the Council is eligible for exemption under Section
11 of the Income Tax Act, 1961. As such, no provision
towards Income-tax is being made in the accounts.
In view of the above, the mandatory Accounting
Standard AS-22 relating to “Accounting for Taxes
on Income” issued by the Institute of Chartered
Accountants of India, is considered not applicable in
the case of the Council.
25.
As per Accounting Standard AS-15(Revised) relating
to “Employee Benefits” the disclosure of employee
benefits as defined in the said Accounting Standard
are given below:
(i) Defined Contribution Plan:
Council’s Contributions to defined contribution
plan recognized as expenses for the year are
as under:
Particulars
2015-2016 2014-2015
Rupees
Rupees
Contribution to Provident
Fund
38,23,951 32,54,719
Contribution to Group
Gratuity Scheme
407,158
3,702
Contribution to Leave
Encashment Scheme
2,12,741 14,61,319
THE GEM & JEWELLERY EXPORT PROMOTION COUNCIL
(A COMPANY LIMITED BY GUARANTEE AND NOT HAVING SHARE CAPITAL)
NOTES TO THE STANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH, 2016
