« Top Headlines » Open DEMAT Account in 24 hrs  Mock Test Papers Series - I & II for Students appearing in CA Foundation January 2027 Examination.  Income Tax Rules 2026: CBDT Introduces Revised Form 161 for Penalty Waiver, Clarifies Misreporting Categories and Taxpayer Relief  ITR Filing and Income Tax Audit Deadline Extended: 5 Critical Things Taxpayers Must Know  Filing Belated ITR for AY 2026-27? Know Which Losses You Can Carry Forward and Which You May Lose  CBDT Extends Tax Audit Report Deadline to October 21, ITR Filing Last Date to November 21 for AY 2026-27  CBDT Extends AY 2026-27 ITR Filing Deadline for Tax-Audit Cases: New Dates and Key Compliance Details  Foreign Assets Missing From Your ITR? Income Tax Department Opens One-Time Disclosure Window  Tax Audit Deadline September 30: Why AIS, TDS and GST Figures May Not Match Your ITR and What Taxpayers Should Do  Tax audit deadline September 30: Common mistakes taxpayers should avoid  Your ITR says ‘verified’, but the refund hasn’t arrived? 5 reasons why your money could be stuck  Missed the ITR Deadline but TDS Refund Is Due? Here’s How You Can Still Claim Your Money «  Dearth of IRS staff plagues I-T dept... Mauritius to finalise tax treaty by Dec... » Tax rejig for gems sector on anvil November, 17th 2006 The next Budget is likely to see significant changes in the duty structure for the gems and jewellery sector. An expert group set up by the finance ministry under former revenue secretary MR Sivaraman may recommend imposition of direct tax on the basis of turnover.    The groups recommendation, expected to be used for reworking the tax structure, will be submitted to the government soon.    Senior officials said even the commerce ministry, which had provided inputs to the group, had made a strong case for reducing taxes to make the country a gems and jewellery hub. Last year, the ministry had suggested imposition of a presumptive tax instead of income tax on the sector.    Under the new regime, tax will be paid on the basis of the expected turnover. The ministry, in its recommendations, had said that the presumptive tax regime would result in higher tax collections, expand the tax base and lower the cost of tax administration.    The commerce department had recently compared the tax regime in India with Thailand, a gems and jewellery hub. The findings of the study have also been submitted to the expert group.    The study noted that cut and polished coloured gemstones attract Customs duty of around 22 per cent in India and zero duty in Thailand. Similarly, gold in bars and biscuits attracts a Customs duty of Rs 102 per ten grams compared with zero per cent in Thailand.    Silver in bars and biscuits in India attracts an import duty of Rs 510 per kg compared with zero duty in Thailand. The sector also attracts 12.5 per cent service tax, octroi of 2-4 per cent and 4 per cent central sales tax (CST). These taxes are nil in Thailand.    The study has also pointed out that Thailand gives exemption from corporation tax for five to eight years while in India, the income, net of exemptions and deductions, is subject to a tax of 33.66 per cent.    In addition to the tax break, Thailand allows an eight-year tax holiday for re-location of existing gems and jewellery units inside the gemopolis.    Export of gems and jewellery is a significant part of Indias merchandise trade. During 2005-06, India exported gems and jewellery worth $ 15.54 billion.    However, there has been a marginal decline in exports this fiscal. According to provisional trade data for April-July 2006-07, exports declined to $ 4.76 billion from $ 4.77 billion in the same period last year.