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.

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 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
Business Standard
177 22
Business Standard

Govt may withdraw excise duty on gold jewellery

Anindita Dey  |  Mumbai 

Gold jewellery

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 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.

RECOMMENDED FOR YOU

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 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
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

Widgets Magazine

More News

STOCK WATCH

Company Price() Chg(%)
Claris Lifescien 201.90 20.00
Dynamatic Tech. 2618.45 14.63
Hindalco Inds. 102.65 11.76
T N Newsprint 283.60 11.41
Elgi Equipment 178.50 9.64
> More on BSE Gainers
Company Price() Chg(%)
Dynamatic Tech. 2607.95 15.32
Hindalco Inds. 102.65 11.70
T N Newsprint 283.60 11.35
Elgi Equipment 179.00 9.18
Muthoot Finance 233.15 8.62
> More on NSE Gainers
Company Price() Chg(%)
Tree House Edu. 71.05 -9.61
Jubilant Food. 1027.00 -7.66
Marksans Pharma 43.95 -6.79
Bajaj Electrical 238.10 -6.30
Punj Lloyd 20.65 -4.84
> More on BSE Gainers
Company Price() Chg(%)
Tree House Edu. 71.15 -9.71
Jubilant Food. 1027.15 -7.63
Lanco Infratech 4.35 -7.45
Marksans Pharma 44.00 -6.88
Bajaj Electrical 237.85 -6.32
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard