Page 38 - Bullion World Volume 02 Issue 02 June 2022_Neat

INDIA news
Bullion World | Volume 2 | Issue 02 | June 2022

The second phase of mandatory gold hallmarking is to be implemented

from June 1: GOI

Gold hallmarking is a purity certification of the precious metal and was voluntary in nature till June 16, 2021,
when the government decided to implement mandatory gold hallmarking in a phased manner. In the first
phase, 256 districts of the country were covered. The second phase of the mandatory hallmarking will cover
additional three categories of gold jewellery/artefacts (ie 20, 23 and 24 carats) and 32 new districts, wherein
an Assaying and Hallmarking Centre has been set up post-implementation of the first phase.

Source: https://www.financialexpress.com

INDIA UAE CEPA

deal: $10b gold and MCX Launches Gold Mini

jewellery imports Options

from India to grow by

another 50%. The MCX of India recently launched Gold Mini Options Contract
with Gold Mini (100 grams) Futures as the underlying. Investors,
jewellers, traders and other key stakeholders welcomed this move,
India’s gold and jewellery industry will as was evident from the launch day (April 25, 2022) turnover of Rs
be one of the first beneficiaries of the 66.1 crore and the second day turnover of Rs 95.41 crore.
country’s CEPA agreement, starting with
the removal of the 5 per cent import Source: https://www.outlookindia.com
duty into the UAE. The CEPA with India
will help UAE establish itself as the
'jewellery gateway’ to the world, and
enhance the already robust jewellery
retail and wholesale business. UAE will Gujarat: TCS, and TDS make
be effectively exporting gold to India on 9
per cent import duty while the rest of the business tough for bullion
world will be paying 10 per cent. In the
first year of CEPA, UAE can export up to traders
120 tonnes to India and which will rise to
200 tonnes in five years. Bullion traders, who operate on razor-thin margins, have been facing a
challenging situation since the imposition of TCS (tax collected at source) in 2020
Source: https://gulfnews.com and Tax Deducted at Source (TDS) in 2021. Traders are now required to pay Rs
5,000 as tax for a transaction of Rs 50 lakh while the profit is just Rs 500. This
makes it difficult for small traders to conduct business. Traders demanded that
the bullion trade be exempted from the TDS requirements and the TCS rate be
reduced to 0.01%.

Source: https://timesofindia.indiatimes.com

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