India’s gem sector moves closer to turn-over based tax

Expert group to submit recommendations to finance ministry
India’s gem sector moves closer to turn-over based tax

THE expert group commissioned by the finance ministry under former revenue secretary M.R. Sivaraman, to study the financial structure of the jewellery industry, may recommend a tax based on expected turnover which could be incorporated in next year’s budget.

The move to a presumptive tax, which was also supported by the commerce ministry, would be a crucial step forward to transform the country into a gem and jewellery hub along the lines of international diamond trading centres like Antwerp and Israel, senior officials said.

The commerce ministry had indicated in its recommendations that the presumptive tax regime would result in higher tax collections, expand the tax base and lower the cost of tax administration. The findings of its study, which compares India’s tax structure with that of Thailand, has also been submitted to the expert group.

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