20 Feb 2018
DiamondWorld Directory
Home |
News
Home
1 per cent TCS on cash purchase of gold jewellery rolled back
Industry appreciates the step as favourable for the industry
By: Diamond World News Service
|
Jun 1 2016 11:05AM
|
Reference: 13084  

DecreaseIncrease

In its bid to boost demand for gold jewellery, the government has rolled back its budget decision to apply 1 per cent tax collection at source ( TCS ) on cash purchase of gold jewellery of Rs. 2 lakh and above and raised the threshold to the earlier Rs. 5 lakh with effect from June 1.

The decision is a welcome change for the jewellery industry which is grappling with the aftermath of 42-day strike. The jewellery industry was protesting against imposition of 1 per cent excise duty on gold and diamond jewellery — that ended unsuccessfully in mid-April. It is becoming difficult for the jewellery industry to offload their inventory that piled up during the strike.

Gold demand in the country hit a seven-year low in the first quarter of 2016 when sales declined 41 per cent Y-O-Y at 88.4 tonnes. This is 44 per cent below the five-year quarterly average of 156.7 tonnes. India's annual consumption of gold is 850-900 tonnes, says reports.

Saurabh Gadgil, MD at PNG Jewellers, said prices have increased almost 20 per cent since January and is currently ranging between Rs. 29,500-30,000 per 10 gm. "There is very little demand in the market. However, the Rs. 5 lakh relief is expected to create some movement as there are wedding dates in June as well," Gadgil said.

"Government's decision to roll back 1 per cent TCS on cash purchase of gold jewellery of Rs. 2 lakh and above is a favourable step for the jewellery industry. It is good decision & we hope it will have a positive impact on gold jewellery sales," stated Ishu Datwani Founder Anmol Jewellers.

More on TCS

TCS — introduced as a measure to curtail tax evasion and keep a tab on black money transactions — is collected by the seller from the buyer at the time of sale and is deposited with the government. The person from whom the TCS is collected gets credit for the same amount in his income tax return. TCS of 1 per cent was imposed on cash purchase of jewellery worth Rs. 5 lakh or more and of bullion worth Rs. 2 lakh or more in 2012.

Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
Advertisement
HouseAd_Trade Fair
Search News by City
Advertisement
Kosher 23460
Advertisement
HouseAd_Trade Fair
Recent Issue
2018
AVAILABLE NOW...!
Advertisement
Kosher 23460
News in Pictures
Videos
VOD DUBAI INTERNATIONAL JEWELLERY SHOW 2017
Pictures: 60
35th Hong Kong Jewellery & Gem Fair
Pictures: 16
Week in Photos – 14 to 19 August 2017
Pictures: 8
India International Jewellery Show 2017
Pictures: 16
Basel World 2017
Pictures: 31
GJEPC 50 years celebration
Pictures: 8
Mines to Market Conference 2017
Pictures: 28
Spotted
Pictures: 35
HKTDC Hong Kong International Jewellery Show 2017
Pictures: 25
43rd India Gem and Jewellery Awards
Pictures: 29
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 9170
GJEPC Chairman Interview
Views: 8158
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 14548
Promo for IJ Awards 2012 at NDTV Profit
Views: 24605
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 27694
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 7113
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 26330
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 26134
Advertisement
Kiran Gems
Advertisement
M.Tarun
Member of:
Supporter of: