Tax on gold relaxed
Posted on: 14/Jul/2016 11:55:12 AM
In an official statement, the government has said that India on Wednesday relaxed the rules for its tax on gold jewellery sales that was introduced earlier this year in an attempt to address concerns raised by the industry.
India is the world’s second biggest gold consumer. Recently, the jewellers went on a six week strike after a 1 per cent excise duty on gold jewellery was imposed with effect from the current fiscal year. A committee to address the grievances was formed. The government, then, accepted the committee’s recommendation.
The official statement says, According to the new rules, jewellers with turnover up to 150 million rupees, around USD 2.2 million, a year will be exempt from the excise duty. Earlier, the exemption limit was for jewellers with turnover up to 120 million rupees. In the first two years, government agencies will not audit jewellers that have turnover of less than 1 billion rupees.
