Indian Gold Book:Indian Gold Book - Gold Bars Worldwide

Gold bullion and gold jewellery are subject to taxes at national, State and municipal levels.
As there are 28 States and many municipalities, this section can provide only a broad overview.
Customs duty is payable at the time the gold is cleared. State sales taxes are normally paid on a monthly basis, after the
gold has been sold.
BULLION
Customs duty
Since 1992, when gold bullion could be imported officially for the first time (under the NRI Scheme), the level of Customs
duty per 10 g (gross weight) has changed four times.
1992 March Rs 450
1992 April Rs 220
1998 June Rs 250
1999 January Rs 400
2001 March Rs 250
Source: Central Board of Excise and Customs
Customs duty, payable in foreign currency (normally US dollars), has generated substantial revenues. The approximate
amounts below are recorded under the standard financial year (April - March).
Financial Approx. * Approx.
year Rupees US dollars
Millions Millions
1992 2,000 80
1993 2,500 80
1994 2,600 80
1995 5,500 170
1996 6,500 180
1997 11,600 320
1998 15,100 360
1999 22,400 520
2000 21,300 480
2001 16,800 360
Total 106,300 2,630
* Official statistics are not available. Derived from monthly imports,
Mumbai gold prices, exchange rates and the prevailing level of
Customs duty.
The Government has had difficulty raising Customs duty above Rs 250 per 10 g. During the period January 1999 - February
2001, the higher level stimulated the unofficial import of gold to the detriment of official imports.
Assuming an international gold price of US$ 300 and a US$/Rupee exchange rate of Rs 48, the import of Customs duty on
a 10 tola bar (3.75 oz) at the Rs 250 and Rs 400 levels can be expressed as follows:
30
ROLE OF INDIAN GOVERNMENT
CUSTOMS DUTIES, STATE SALES AND OTHER TAXES
Mark-up on Customs duty
10 tola bar per 10 g
Rs 250 Rs 400
In rupees 2,902 4,653
In US $ 60.46 96.93
Mark-up per oz Customs duty per oz
In rupees 776 1,244
In US $ 16.19 25.92
% 5.4 8.6
AN INTRODUCTION TO THE INDIAN GOLD MARKET