UAE: Here’s why Indian expats and tourists are buying gold in Dubai – News

Jewelry in UAE is nearly 15% cheaper, experts say

As Diwali festivities in the UAE kick off, gold jewellery buying in Dubai is starting to pick up in the days leading up to the festival. More than any other precious metal, Indians have always shown a keen interest in gold. They have long preferred to buy gold in the UAE rather than India due to the high purity of the gold sold here.

The Dubai Gold & Jewellery Group, which attends all major festivals in the city, claims that “35% of Dubai’s trade is in gold and jewellery products.”

Abdul Salam KP, Deputy Chairman and Deputy Chairman of GED Malabar Group, said: “Dubai is the place to buy gold and jewellery as it offers the best prices and showcases the greatest variety. No matter where in India the jewellery comes from, it will come and go. Dubai. We always say, ‘Dubai is where any Indian buys her/his jewellery’ (regardless of its Indian origin).

“If you go to South India…for example, in Chennai, you get South Indian style jewellery. If you go to Delhi, you get North Indian (design) jewellery; if you go to Mumbai, you get design dining to India West. But if you come to Dubai, you can get all kinds of styles of Indian jewelry, whether it’s from Kerala or Kashmir, all at the best prices. Jewelry prices in Dubai are almost $12 to $15. Cheaper in Dubai penny.”

Experts explain the limits of passengers

However, if you plan to bring gold jewellery to India, tax experts say you need to be cautious.

Explaining the restrictions imposed by the Central Indirect Tax and Customs Board (CBIC) on Indian passengers returning to India (after more than a year), Pankaj S Jain, Managing Director, AskPankaj Tax Advisors, UAE, said: “For male travellers who have lived abroad for more than one year, Gold jewellery of up to 20 grams with a value of up to Dh2,500 (Rs50,000) can be brought in duty-free. For female travelers, the above limit is doubled, i.e. up to 40 grams, with a value of up to Dh5,000 (Rs100,000) .”

Subhash Chand Jain, Managing Partner of RSA Legal Solutions, India, who works closely with the UAE, said: “The ‘duty free’ allowance does not allow the importation of gold jewellery. ‘The allowance includes ‘used personal effects’,’ which is generally understood to include jewellery .However, Indian tax authorities have often clarified that ‘used personal effects’ do not include jewellery.”

He added: “Importation of gold (including jewellery) is only permitted in limited circumstances. Any passenger of Indian origin or holder of an Indian passport who comes to India after staying overseas for at least six months can import up to one kilogram of gold (including jewellery). ) after payment of duties. As a matter of practice, old jewellery of nominal value normally worn by passengers may be allowed on arrival.”

“It is understood that the tariff on gold bars was recently increased from 7.5% to 12.5%.”

“Agriculture and Infrastructure Tax (AIDC) is 2.5% and the total duty is 15%. In addition, an additional 3% Goods and Services Tax (GST) is imposed, resulting in a total import duty of 18.45%. China’s gold imports have grown by 790% year-on-year, so tariffs have increased,” Jain added.

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