Government waives TCS for gold jewellery purchase upto Rs 5 lac

Central govt rolls back tax on cash buy of gold jewellery

 

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.

source: Daijiworld Media Network - New Delhi (SP)

Hallmarking rule on cards to ensure quality

Jewellery buyers in the country would now be sure of the purity of gold and silver used in the ornaments they buy, as hallmarking could soon be compulsory.

The government had passed the Bureau of Indian Standards (BIS) Act, 2016, on March 21 this year. The new rule is yet to be implemented, but market players expect hallmarking to become mandatory by Diwali. This Act makes it mandatory that all precious metal jewellery and articles sold in India are hallmarked according to the defined standards. This is a game-changing move that will bring significant benefits for customers and make the industry more accountable and transparent.

It has been an age-old experience of Indian gold consumers that they have usually ended up getting low purity jewellery than what they paid for.

With the new law cleared by both Houses of Parliament in March; all gold, silver and platinum jewellery would have a BIS-certified quality. Coins and bars would also have to be hallmarked.

China, incidentally, implemented mandatory hallmarking of jewellery from this month.

However, there would be implementation challenges also. Tanya Rastogi, director, Lala Jugal Kishore Jewellers, said: "For those not doing hallmarking, the cost would go up by one per cent." At present, hallmarked gold jewellery is costlier by around Rs 500 per 12g piece than one which is not. In silver, 95-purity hallmarked jewellery (considered the best quality) is sold at a mark-up of 25-30 per cent compared to the non-hallmarked variety. The question is who will foot the additional bill.

Gold jewellery hallmarking began in 2001 and of silver jewellery in 2005. However, it was not mandatory.

At present, there are only 375 BIS-certified assaying and hallmarking (A&H) centres in the country. Rastogi says, "There is an implementation challenge. We need at least 5,000 hallmarking centres and this is the biggest problem. Small towns don't have the centres and carrying jewellery to bigger towns (for hallmarking) would involve a lot of risk." He recommends the government take some initiative in this regard.

Sudheesh Nambiath, lead analyst for precious metals at GFMS Thomson Reuters, adds: "It is very unlikely that the hallmarking scheme will be rolled out nationwide at one go. It will likely be a phase-by-phase implementation." GFMS estimates half of jewellery produced is hallmarked at present.

The other key question is whether the existing hallmarking centres are capable of handling the additional business. Some believe they are. K Anand Kumar, secretary, Indian Association of Hallmarking Centres, says: "The existing capacity is enough."

He, however, clarifies that after the rule is implemented, such centres can hallmark only 14 (585 purity, used mainly for exports), 18 (750 purity, for diamond studded jewellery) and 22 (916 purity, used for jewellery making) carat jewellery.

Coins and bars of gold, as well as 24-carat gold, will be hallmarked by BIS-certified refineries and these products will contain the BIS mark and refinery code number. So far, the demand for hallmarked coins has been met through import. It will be the first time that domestically hallmarked coins will be introduced.

While it is still unclear on how and when the scheme will be implemented and who will pay the new costs, Sudheesh sums up on a positive note. He says, "The Act finally makes room for the much-awaited 'Indian Standard' gold, certified by BIS. The current trade practice is to import one kg of LBMA (London Bullion Market Association) or DGD (of the Dubai Multi Commodities Centre-accredited gold bars. This (new move) could be another important step towards making the Gold Monetisation Scheme acceptable to banks, due to the standardisation of gold bars."

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A GAME CHANGER

• Hallmarking for gold jewellery was first introduced in India in 2001 and for silver jewellery in 2005
   
• GFMS data show only half of the jewellery is being hallmarked at present
   
• Mandatory hallmarking will cover all precious metals, coins and bars of gold
   
• Implementation likely before Diwali but in phases
   
• Low number of hallmarking centre seen as an implementation challenge

Source: http://www.business-standard.com/article/markets/hallmarking-rule-on-cards-to-ensure-quality-116052300017_1.html

New tax regime to hit 40% of India's jewellery sales

Around 40 per cent of India’s jewellery sales are likely to get affected with the implementation of tax collection at source (TCS) effective June 1 along with requirement to submit Permanent Account Number (PAN). Earlier this year, the government had levied a one per cent of TCS on cash transaction worth Rs 2 lakh and above in all financial instruments including luxury items such as jewellery, to curb black money from the system.

The guidelines include part-payment of the entire transaction as cash. This means, if a customer buys precious ornaments worth Rs 5 lakh and pays Rs 4.5 lakh through cheque and Rs 50,000 by cash, he would have to pay one per cent TCS on the entire transaction. TCS is also levied on jewellery and bullion sales of Rs 2 lakh and above.

Feeling the heat, jewellers have almost stopped stocking high-end jewellery worth Rs 2 lakh and above with gold content of 70-80 grams. Sale of such ornaments would be executed only through advance orders. In case of diamond jewellery, the sale of ornaments with gold content of 20-30 grams would be difficult. Customised niche jewellery such as Jadau, Awadhi etc would face huge problems to find buyers.

“TCS alone would reduce the entire segment of business with jewellery worth Rs 2 lakh. This segment consists of nearly 40 per cent of the entire jewellery sales, which would get affected badly,” said a senior official with the India Bullion and Jewellers Association.

The worst part of the TCS is the fear, which the government has tried to create among jewellery buyers.  The government has directed jewellers and bullion dealers to pay TCS on a monthly basis and compile the data base along with the PAN of customers who buy jewellery worth Rs 2 lakh and above. This data base is to be submitted to tax authorities on an annual basis. “Jewellers’ sales volume would be impacted badly on switching of customers to light-weight jewellery to avoid tax glare,” said Mehul Choksi, managing director of Gitanjali Gems, for which jewellery worth Rs 2 lakh and above constitutes 30 per cent of its total sales.

“Sentiment is very weak for the entire jewellery sector with so much of negative publicity. With this new levy, customers would think twice before buying jewellery worth Rs 2 lakh,” said Dilip Lagu, director, Lagu Bandhu Jewellers.

According to World Gold Council (WGC), India’s gold demand declined 39 per cent to 116.5 tonnes during the January-March 2016 quarter against 191.7 tonnes in the year-ago period.

“The industry is facing challenging times; a vision detailing its future role in the economy and a stable policy framework is needed to allow this entrepreneur-driven, employment-intensive industry to channel its energies towards higher value creation,” said Somasundaram P R, managing director (India) at WGC. 

Source: http://www.business-standard.com/article/markets/new-tax-regime-to-hit-40-of-india-s-jewellery-sales-116052000956_1.html

One lakh jewellers on strike to protest PAN rule on gold purchases

Indian jewellers were up in arms on Wednesday, with strikes called in nearly 500 cities to protest the government’s rule that makes it mandatory for customers to provide a PAN card on all jewellery transactions of Rs 2 lakh and above.
The one-day strike, which is likely to see the participation of about 100,000 jewellers across India under more than 200 associations, is the first of many such large-scale strikes being organised ahead of the 2016 Budget in a bid to pressure the government to revoke the new norms, and to come out with a clear demarcation between gold and gold jewellery purchases.
The All India Gems and Jewellery Trade Federation (GJF), which is one of the apex bodies representing jewellers across the country, says that the government’s decision will affect gold transactions severely as a majority of people still don’t have PAN cards.
“In our opinion more than 80% of the population doesn’t have PAN cards. What is the point of having such a legislation when a large majority of the population gets affected?” asked federation director Ashok Minawala.
The government had devised the rule in December last year, and implemented it from January 1, 2016, applying it to all sale and purchase of goods and services and for all modes of payment.
The move is aimed at curbing black money or unaccounted money that is typically used to make such purchases.
However the jewellers’ federation says that such a restriction will result in an increase of under the counter payments.
“It is self-defeating as it is generally the middle class and agriculturists who purchase gold jewellery annually during festivals and marriages. Most of the black money is typically used in buying gold in bullions as the depositor would plan to convert this into cash subsequently. Why would anybody buy jewellery to hide black money? Since the current government is pro-industry, we are confident that our stance will be accepted,” said Minawala.
Although the actual monetary impact from the strike could not be ascertained, it will affect a day’s wages for the 6 crore people working in the industry, of which about 1 crore are artisans directly involved in jewellery making.
“It is a deterrent and would severely hit sales. Earlier the PAN card norm was applicable for purchases of Rs 2 lakh and above for bullion and on Rs 5 lakh and above for gold jewellery. That was practical. Now to club all purchases at Rs 2 lakh and above is wrong,” said jeweller and director at Popley and Sons. “Also, the onus is now on us to find out who is making the purchase and who owns the PAN card. It is unfair to expect us to do that,” he added.
Source:  http://www.hindustantimes.com/business/indian-jewellers-up-in-arms-over-centre-gold-purchasing-norms/story-zzXFi9dkaOZWgEPxjULgxM.html

Models with gold ornaments

some more pics from net for gold ornaments designs for you.

Golden baba who wears jewellery worth Rs 3cr turns heads at Ardh Kumbh

हरिद्वार में बाबा ने तीन करोड़ के जेवरात पहनकर गंगा में लगाई डुबकी

 

 

हरिद्वार में चल रहे अर्धकुम्भ मेले में गंगा में डुबकी लगाने वालों के अलग ही नजारे दिखाई पड़ते हैं। लोग विशेष तरह की वेशभूषा में आते हैं। नागा साधु भी होते हैं तो जूना अखाड़ा से आने वाले संत भी। अपनी तरह का यहां का माहौल अलग ही होता है। गत शुक्रवार को एक ऐसे संन्यासी ने अपने शिष्यों के साथ डुबकी लगाई जिन्होंने अपने शरीर पर सोने के बने आभूषण पहन रखे थे। आभूषण थोड़े भी नहीं, साढ़े पन्द्रह किलो के। इनकी कीमत लगभग 3 करोड़ रुपए थी।

घाट पर जब इन संन्यासी ने चेलों समेत डुबकी लगाई तो सभी की आंखें उनकी ओर ही थी। बाबा के आभषूणों से लदे होने के मामले में जब उनके शिष्यों से सवाल किया गया तो शिष्यों ने तपाक से उत्तर देते हुए कहा, जिस तरह सोना कीमती और अमूल्य वस्तु है उसी तरह से हमारे गुरु भी स्वर्णाभूषण से सुशोभित और विभूषित हैं जो उनके व्यक्तित्व के अनुकूल ही है और वे शोभायमान हैं।

जानकारी करने पर पता चला कि संन्यास लेने के पहले बाबा का नाम सुधीर कुमार मक्कड़ था। दिल्ली में उनके जेवरातों का व्यापार था। बहुत कुरेदने पर बाबा ने कहा कि व्यापार में लिप्त रहने के चलते कुछ अपराध हो ही जाते थे। इन अपराधों से छुटकारा पाने के लिए आस्तिक बन गया।

SOURCE: http://www.patrika.com/news/miscellenous-india/golden-baba-who-wears-jewellery-worth-rs-3cr-turns-heads-at-ardh-kumbh-1162006/

Gujarat Gold Jewellery Show 2016

GGJS 2016

The 7th edition of GGJS show a multi specialized Jewllery fair from 08 to 10 January, 2016 at Gujarat University Convention and Exhibition Centre, Ahmedabad. The show will host the India's finest Jewellery Wholesalers & Manufactures showcasing cutting edge Jewellery products from various ranges in the industry and providing opportunity for new market, product exposure and potential business opportunity.

This will be a one - stop B2B Jewellery Exhibition in the state. One will gain ample exposure on the new-age product design, extra ordinary productivity, most advanced machineries / technologies and competitiveness in the industry. This would be comprehensive trade show in India as visitors will be invited from different parts of the country.

GGJS (Gujarat Gold Jewellery Show) has become largest, Significant & essential Business Exchange platform for Manufacturers, Wholesalers, Retailers & End-users. Being the unique B2B Exhibition, GGJS has opened up a gateway for entire Western India to explore business opportunities at Global level.

The 5 consecutive GGJS Exhibitions have witnessed the enormous success and set a benchmark by earning the unbiased reputation among Jewellery industry. With the same spirit, GGJS is going to unveil its 6th Edition with more than 400 stalls, 30 premium pavalions, 250 Exhibitors across India, 17,000 trade visitors. And all these will shape a never-said success story on an area spread over 84,000 Sq.ft.

Show Time & Venue Details

Date	Opening Hours Visitor	Registration Hours
8th   January	10:00 AM - 06:00 PM	09:30 AM - 05:30 PM
9th   January	10:00 AM - 06:00 PM	09:30 AM - 05:30 PM
10th  January	10:00 AM - 06:00 PM	09:30 AM - 05:30 PM

Venue

Gujarat University Convention & Exhibition Centre
Nr. Helmet Circle, 132' Ring Road,
Ahmedabad, Gujarat INDIA.
Source: ggjs website  http://ggjs.co.in/