468. Customs duty calculation on gold in India | Taking gold to India from USA/Dubai
Questions: Hello,Found your website while browsing and found it very valuable in finding information about the gold import to India. I am however a bit unsure about the 'duty' that is charged. I am wanting to buy some gold (bars) here in the UK and take it to India for my family. I have been living in the UK for more than 2 years. All I want to know if possible from you is what do you mean by the 'value' in the 2% duty charged. Does the value mean the current price of gold in India at the time of import or the price at which the gold was bought in the UK? Also is it the 2% alone or any additional charges that will be incurred?I would be grateful if you can share the above information with me as early as possible.Many Thanks,PavanAnswer: Normally duty is charged on the purchase price of most items. Gold prices fluctuate almost daily across the world, however the vast difference in gold price today, no longer exists and the price of gold world wide is somewhat comparable. To answer your question, if you purchase gold in UK, get a proper receipt of the the purchase and take the gold to India within a reasonable time, the receipt of the purchase may be acceptable by the customs authorities for calculation of duty as a percentage. On the other hand, if you kept the gold in UK and took it to India when the price of gold has risen worldwide, then the price at the time of import would be used for calculating customs duty. A 3% cess charge on the duty calculated is also added. For example, if duty works out to $100, then 3% cess is added and the total payable is $103.Taking gold to India from abroad is a hot topic these days. Every time the price of gold slightly rises in India, it is reported in the news media, however since the price of gold depends on the world market conditions, the chances are that if gold has gone up in India, it has also gone up in price abroad. Of course normally not many NRIs are interested in checking the price of gold overseas on a daily basis. As I write this, the price of gold in the United States is quoted as being around $1785 per ounce. Converting to Indian Rupees @56 this works out to Rupees 99960 for an ounce or for 31.1 grams of gold. Since the price of gold in India is normally quoted for 10 grams of gold, lets calculate the US gold price for 10 grams of gold. This works out to Rupees 32141.50.Compare this to the price of gold in India today (Sept 7, 2012)
Is it worth taking gold from USA to India?
Considering the customs duty charged in India on gold and an additional 3% cess, it does not seem to make any sense in taking gold to India from USA from a monetary gain standpoint.
Taking gold to India from Dubai
Gold is Dubai is said to be slightly cheaper, as I write this article, the current price of gold in Dubai is quoted as 54.48 USD$ per gram. (Rs. 3051 approximately for 10 grams compared to Rs 32141 USA price)Kindly note that the prices quoted for gold in USA and Dubai is for Gold rate per 24K Gram. Whereas in India, when you buy gold jewelery, it is mostly 22K and some unscrupulous jewelers may charge you the 24K rate for 22K of gold.