Central govt rolls back tax on cash buy of gold jewellery


Government waives TCS for gold jewellery purchase upto Rs 5 lac

Daijiworld Media Network - New Delhi (SP)

New Delhi, Jun 1: In a move which has brought cheers to both the buyers of gold ornaments and dealers, the central government, which had proposed to levy tax collection at source (TCS) of one percent for purchase of gold and diamond ornaments worth two lac rupees and above at a stretch, has gone back on this decision. The prolonged protest observed by gold merchants across the country on this contentious issue seems to have done the trick.

As per budgetary announcement, this tax was to come into effect from June 1 this year. Bending under pressure brought by gold merchants all over, the government, which had hitherto remained firm on levying this tax and also collection of PAN number of customers for all purchases of two lac rupees and above, has relented. It has restored this limit to five lac rupees as suggested by jewellers. TCS however, will continue to be levied on purchase of goods and services worth two lac rupees and above in cash at a stretch from June 1 onwards.

All India Gems and Jewellery Trade Federation director, Bachcharaj Bamalva, who welcomed this decision, said that this decision has brought relief to people who were preparing to buy wedding jewellery in this season. Saurabh Gadgil, executive director of PNG Jewellers, says that the government, by giving leverage on its earlier stand, had taken a step that is customer friendly, as gold price has gone up by about 20 percent in the recent past.

The first quarter of this year had registered a noticeable decline on gold jewellery turnover by 41 percent, which stood 88.4 tonnes. This was attributed to hike in price of gold and also protracted strike by jewellers which went on for 45 days. Annually there is a demand for 850 to 900 tonnes of gold in India.

The government had thought of levying TCS to keep watch on tax evasion and black money transfer.

 

  

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Comment on this article

  • Aubb, Kuwait

    Wed, Jun 01 2016


    Another U turn by Tughlak Darbar.

    DisAgree [3] Agree [9] Reply Report Abuse

  • Jossey Saldanha, NY

    Wed, Jun 01 2016

    Roll forward should be BANNED ...

    DisAgree [3] Agree [3] Reply Report Abuse

  • LNT, Mumbai

    Wed, Jun 01 2016

    First levy tax then roll back due to huge protest
    What happened those who already purchased gold with tax. Will it rwfubdable .

    DisAgree Agree [9] Reply Report Abuse

  • mohan, mangalore

    Wed, Jun 01 2016

    90 % of gold merchants are gujarati's . Defenatly Modi will fever to them.
    The increase of petrol and diesel, will compensate to gujju's.
    Public ko looto and gujjuon ka pate Baro.

    bahut ache din Aa-gaye hey.

    DisAgree [5] Agree [22] Reply Report Abuse

  • john N, Mangalore/Dubai

    Wed, Jun 01 2016

    Sometimes back Rahul Gandhi also joined protest with the Jewelers group. now he will say Congress forced the govt. to roll back the tax.

    DisAgree [12] Agree [5] Reply Report Abuse

  • IQBAL, ATHOOR/AUH

    Wed, Jun 01 2016

    BUT
    Petrol price up by Rs 2.58, diesel by Rs 2.26

    DisAgree [5] Agree [19] Reply Report Abuse

  • Samuel Sadanand , Balmatta /Kuwait

    Wed, Jun 01 2016

    Increase in fuel prices and roll back on TCS. Wow.Govt buckled under pressure of black marketeers

    DisAgree [3] Agree [23] Reply Report Abuse

  • Alwyn, Mangalore

    Wed, Jun 01 2016

    Good Idea by BJP. Now more BJP MLA,MP and more power to them. So they can buy Gold and keep stock in their home.....What a brain of Mr. Modi????

    DisAgree [10] Agree [26] Reply Report Abuse

  • Santan Mascarenhas, Kinnigoli/Mumbai

    Wed, Jun 01 2016

    Jewellers are a class businessmen who subscribe heavily for election fund. Modi cannot afford to lose their generosity.

    DisAgree [10] Agree [27] Reply Report Abuse

  • Dev Kumar, Mangalore

    Wed, Jun 01 2016

    When people can give tip at restaurants why hesitate to give 0.5%. It's after all for the developmental work. Treasury is empty due to previous government.

    DisAgree [48] Agree [16] Reply Report Abuse

  • Sampath, Mlore/ Blore

    Wed, Jun 01 2016

    Its not like that bro.... 1st ULLU BANAING.... Then showing their true colour..... When public come to know the " HIDDEN AGENDA" then U - Turn... and increasing the prices of other commodities (Like Petrol prices increased yesterday... Saaf bi mare Laati bi na tute....

    DisAgree [2] Agree [19] Reply Report Abuse


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Title: Central govt rolls back tax on cash buy of gold jewellery



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