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