Business Standard

Govt may withdraw excise duty on gold jewellery

Gold jewellery
Related News

Jewellers may heave a sigh of relief as the government may withdraw the new excise duty proposals on the sector.

In a decision to be taken next week, the finance ministry may remove the duty on both, branded and unbranded jewellery, while continuing with the basic on gold bars.

The ministry had levied an excise duty of one per cent on branded precious metal jewellery in the Budget this year. In the Union Budget 2012-13, the finance ministry included unbranded jewellery under the excise duty structure.

However, jewellers may be subjected to scrutiny for extension of small-scale industry exemption, registration, etc, sources said.

According to sources close to the development, the proposal for (TCS) on purchase in cash of bullion or jewellery in excess of Rs 2 lakh may also get reviewed. Sources said in order to balance the concern of unaccounted funds getting routed through jewellery purchase and harassment to genuine consumers of gold, the threshold for collection of TCS at the rate of one per cent of the sale may be raised.

However, the ministry may continue with the basic Customs duty on standard gold bars, raised from two per cent to four per cent, while on non-standard gold it was raised from five per cent to 10 per cent . In addition to this, basic duty on gold ore, concentrate and dore bars for refining has been enhanced from one per cent to two per cent.

Sources said the Customs duty structure may be retained to address the concern of a growing current account deficit, 50 per cent of which is contributed by gold and other precious metal imports.

In the last financial year, the government had restructured the import duty on gold from an absolute basis to value-based. Accordingly. the import duty on gold was raised from a Rs 300 per 10g to two per cent of the value and import duty on silver was raised from Rs 1,500 a kg to six per cent of the value, to discourage imports and enable better utilisation of forex reserves.

Gold hit a record high on Friday at Rs 29,750 per 10g. Market sources said gold prices are sluggish in international markets and expected to rise only if the global economic situation worsens. They added the sharp fall in the value of the rupee was making the commodity expensive for Indians.

Read more on:   
|
|
|
|

Govt may withdraw excise duty on gold jewellery

Jewellers may heave a sigh of relief as the government may withdraw the new excise duty proposals on the sector.

Jewellers may heave a sigh of relief as the government may withdraw the new excise duty proposals on the sector.

In a decision to be taken next week, the finance ministry may remove the duty on both, branded and unbranded jewellery, while continuing with the basic on gold bars.

The ministry had levied an excise duty of one per cent on branded precious metal jewellery in the Budget this year. In the Union Budget 2012-13, the finance ministry included unbranded jewellery under the excise duty structure.

However, jewellers may be subjected to scrutiny for extension of small-scale industry exemption, registration, etc, sources said.

According to sources close to the development, the proposal for (TCS) on purchase in cash of bullion or jewellery in excess of Rs 2 lakh may also get reviewed. Sources said in order to balance the concern of unaccounted funds getting routed through jewellery purchase and harassment to genuine consumers of gold, the threshold for collection of TCS at the rate of one per cent of the sale may be raised.

However, the ministry may continue with the basic Customs duty on standard gold bars, raised from two per cent to four per cent, while on non-standard gold it was raised from five per cent to 10 per cent . In addition to this, basic duty on gold ore, concentrate and dore bars for refining has been enhanced from one per cent to two per cent.

Sources said the Customs duty structure may be retained to address the concern of a growing current account deficit, 50 per cent of which is contributed by gold and other precious metal imports.

In the last financial year, the government had restructured the import duty on gold from an absolute basis to value-based. Accordingly. the import duty on gold was raised from a Rs 300 per 10g to two per cent of the value and import duty on silver was raised from Rs 1,500 a kg to six per cent of the value, to discourage imports and enable better utilisation of forex reserves.

Gold hit a record high on Friday at Rs 29,750 per 10g. Market sources said gold prices are sluggish in international markets and expected to rise only if the global economic situation worsens. They added the sharp fall in the value of the rupee was making the commodity expensive for Indians.

image

Read More

Gold futures down 0.13% on weak spot market

Gold futures prices today fell by 0.13 per cent, to Rs 29,630 per 10 grams as speculators offloaded their positions even as the metal strengthened ...

Recommended for you

Advertisements

Quick Links

Market News

Kaveri Seed drops as RBI caps further FII investment

Shareholding by FIIs/FPIs has reached the trigger limit

Sebi-FMC merger to delay exchange IPOs

Says issues need to be sorted out before exchanges are given a green signal to list

Markets pare gains; HDFC Bank, Bharti Airtel dip over 1%

At 12.15 PM, the 30-share Sensex is down 36 points at 27,141 and the 50-share Nifty has lost 7 points at 8,207

MFs increase focus on exchange-traded funds

Most fund houses are looking at launching funds indexed to the Sensex and the Nifty

Crude palm oil falls for 5th-day on subdued demand

The commodity sheds another 0.5% as traders pare positions

 

Back to Top