« Top Headlines » Open DEMAT Account in 24 hrs  Delhi HC Rules GST Registration Cannot Be Cancelled Retrospectively Without a Clear Show Cause Notice (SCN)  Belated income tax return AY 2026-27: How to file, late filing charges and what you may lose  Major Financial Changes from August 1, 2026: ITR Deadline, RBI MPC Meeting, Tatkal Ticket Rules & More  Government proposes to ease tax relief conditions for offshore funds  TallyPrime Connected Banking: Automating Banking and Accounting  ITR Filing Deadline 2026: Is July 31 the Last Date to File Your Income Tax Return? Latest Official Update  ITR filing deadline nears: How to file income tax return online on e-filing portal - quick 15-step guide  Will the ITR Filing Deadline Be Extended Beyond July 31 for FY 2025-26? Here's the Latest Update for Taxpayers  Income Tax Refund Delayed for AY 2026-27? 5 Common Reasons Your Refund May Be Stuck and How to Fix It  ITR Filing 2026: FM Nirmala Sitharaman Asks Tax Officials to Let Honest Taxpayers Correct Genuine Mistakes  Will Your FCNR Deposit Stay Tax-Free After Returning to India? Tax Rules Explained for NRIs «  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.