Skip to main content

Tighter norms for gold jewellery exporters

Tighter norms for gold jewellery exporters
The Centre is considering fresh measures to stop malpractices in the export of gold jewellery, said two persons familiar with the development. A trade notice issued by the Noida Export Promotion Zone Customs collector on Thursday asked jewellery exporters not to import gold on loan.

They will now have to take gold on loan only from nominated agencies and banks.

Importing gold on loan is considered a banking transaction where interest is paid and hence, “banking transactions for gold exports, like taking gold on loan, shall be done in India,” said Rahul Gupta, chairman of the Export Promotion Council for EOUs and SEZs (EPCES).

Another person familiar with the development said that a recent meeting of development commissioners of SEZs discussed misuse of facilities by jewellery exporters and decided to review the practice of job work outside SEZ areas.

“If it is found that misuse is rampant more stringent measures may be taken,” the source said.

The government had last week banned export of gold jewellery above 22 carats to stop reexporting imports without major changes.

According to GFMS Thomson Reuters, “Round tripping volumes recorded a sharp rise at 89 tonnes in the first half of 2017, up from 53 tonnes in the same period last year. The increase was primarily related to bringing forward exports as the cost of round tripping postGST was expected to increase.” The Directorate General of Foreign Trade has also liberal is ed norms for status holders in jewellery exports.

This limit has been significantly increased for other sectors, but gold jewellery exporters had been kept out, according to Thursday´s notice by the DGFT.

The Business Standard, New Delhi, 26th August 2017

Comments

Popular posts from this blog

At 18%, GST Rate to be Less Taxing for Most Goods

About 70% of all goods and some consumer durables likely to cost less

A number of goods such as cosmetics, shaving creams, shampoo, toothpaste, soap, plastics, paints and some consumer durables could become cheaper under the proposed goods and services tax (GST) regime as most items are likely to be subject to the rate of 18% rather than the higher one of 28%.

India is likely to rely on the effective tax rate currently applicable on a commodity to get a fix on the GST slab, said a government official, allowing most goods to make it to the lower bracket.

For instance, if an item comes within the 12% excise slab but the effective tax is 8% due to abatement, then the latter will be considered for GST fitment.

Going by this formulation, about 70% of all goods could fall in the 18% bracket.

The GST Council has finalised a four-tier tax structure of 5%, 12%, 18% and 28% but has left room for the highest slab to be pegged at 40%. A committee of officials will work out the fitment and the council…

Coffee-Toffee, the GST Debate Continues

Hundreds of crores of rupees in the form of taxes ride on the exact categorisation of products Is Parachute hair oil or edible oil? Is KitKat a chocolate or a biscuit? Is a Vicks tablet medicament or confectionery? For the taxpayer and the tax collector, this is much more than an exercise in semantics -hundreds of crores of rupees ride on the exact categorisation.
As the government moves closer to rolling out the goods and services tax (GST) on July 1, many such distinctions are being debated so that no ambiguity remains. Not just that, the government is revisiting old tax cases that were lost over product categorisation, according to people with knowledge of the matter, presumably with a view to making sure that revenue collections can be maximised. “In the past, several tax officers had challenged some of the product categorisations, including those in the retail segment, but lost out in court or at appellate level,“ said one of the persons. “Now we have a chance to go ahead with speci…

Deposit gush:-CA Institute Bats for Special Audit