Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: list of goods taxed at 4% :: due date for vat payment :: empanelment :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: TDS :: ACCOUNTING STANDARD :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: cpt :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« Customs and Excise »
 Refund of IGST paid on export of goods under rule 96 of CGST Rules,2017
 Customs And Central Excise Drawback – Part II
 Customs Valuation (Determination of Value of Imported Goods) Rules 2007
 Amendment to Customs Valuation Rules – Notification No. 91/2017 (NT)
 GST on Custom House Agents
 The Customs and Central Excise Duties Drawback Rules, 2017 and All Industry Rates (AIRs) of Drawback related changes
 The Customs and Central Excise Duties Drawback Rules, 2017
 Man fleeing from Customs arrested
 Refund of amount on account of double-payment of Customs
 SC paves way for trial against RIL in 1987 excise evasion case
 GST: Govt sets up panel to receive profiteering complaints

Rise in customs duty may open unofficial channels
April, 19th 2012

The possibility of the movement of gold into the country through unofficial channels has increased considerably, owing to the Budget proposal to double the customs duty. However, the situation may not be as grave as in the 70s and 80s, when huge quantities of gold were smuggled into India because of curbs on imports. The modus operandi may be quite different now.

Though admitting the rise in customs duty from two per cent to four per cent may lead to some smuggling, officials downplayed the risks.
 
The finance ministry may not roll back the rise in customs duty, aimed at narrowing the current account deficit, as it believes the smuggling of the precious metal has considerably lost its lure now.
According to intelligence gathered by the finance ministry, unofficial gold imports would not rise to levels that could compel the government to roll back its decision.

In the late 80s and early 90s, the price of gold in India was 65 per cent higher than in other countries, making gold smuggling an enormously profitable, multi-billion dollar industry. The ban on gold imports was lifted in 1992, leading to a loss in smuggling margins.

Revenue officials said in the changed circumstances, the job of smugglers would be more difficult. Sophisticated security systems at airports and the absence of gold smuggling syndicates would make it hard for smugglers to cross the green channel undetected. The sea route is also unviable now.

At that time, there was a substantial difference in gold prices in India and abroad. But since its import was illegal, there was a premium in smuggling it. Now, gold imports are allowed and the price difference has also come down. So, it is not worth the risk, said an official.

Smugglers, however, have found ways to outsmart customs officials. One method used is to dodge customs officials by declaring bentex jewellery as gold, while going abroad. This jewellery is then dumped in the visiting country, and real gold jewellery is brought while returning to India.

Though the fastest route to smuggle gold is by air, according to unconfirmed reports, a few smugglers are trying to enter India from neighbouring countries like Nepal and Bangladesh. It is because of this, it is believed, gold sells cheaper in cities such as Gorakhpur, which are close to the border.

When the gold transactions are not declared by smugglers, the money is exchanged through hawala transactions. Also, in a few cases, if the gold import takes place in Delhi or Ahmedabad, using legal papers, these are then taken to places where it is sold unofficially, with the official papers destroyed.

Gold seizures in April-December 2011-12 stood at Rs 56 crore, a huge jump from Rs 9 crore in 2010-11. The seizures recorded in 2011-12 may rise further when the figures for the January-March quarter are released. Revenue authorities also recorded instances of gold smuggling after the duty increase in two tranches, though they didnt see a sudden spurt in seizures.

Seizures saw a sharp increase in 2011-12. It could partly be attributed to an increase in gold demand. It is too early to say whether smuggling has suddenly increased after the duty increase, though it may increase a little in the coming months, said an official in the anti-smuggling department.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions