There is a duty on the import of gold in India, whereas it is not so in Dubai.
Due to the absence of import duty, gold is cheap in Dubai.
But if the people of India order jewelry from Dubai, then they will be costly.
New Delhi. Gold is cheaper in Dubai than in India. This is because of import duty. Where duty has to be paid on importing gold in India. At the same time, there is no import duty on gold in Dubai. On September 19, 2022, the price of 22 carat 1 gram of gold in Dubai was Rs 4,252, while in Mumbai, India, 1 gram of gold was getting Rs 4,656. In this way, if someone buys 10 grams of gold from Dubai, then he will have to pay about Rs 4,000 less than India.
Moneycontrol According to a report by the Times of India, due to this difference in the rate, many people get gold jewelery from Dubai from their acquaintances or relatives living in Dubai. But, you will be surprised to know that if you order jewelry from Dubai, then it will bring you a loss instead of profit. Due to the high making charges in Dubai, customs duties and the difference in the value of the currency of the two countries, jewelry purchased from Dubai will put more burden on your pocket.
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Increasing demand for Dubai jewelry
Aqeel Kurien, an NRI living in Dubai, says that a large number of people living in Dubai come to India for festivals. Now they are getting requests from relatives and experts from India to bring gold. There is a good demand for Indian jewelry in Dubai. This is the reason that almost all the major jewelery brands in India have stores in Dubai. There are more jewelery stores in Dubai’s Meena Bazar, Gold Souk and Baniya Street. A salesman in Dubai’s Meena Bazar said that there has now been a 30 per cent increase in jewelery purchases by Indian passport holders as compared to the previous quarter.
Ashish Pethe, chairman, All India Gem and Jewelery Domestic Council, says that after levying 15 percent import duty and 3 percent GST in India, there is a difference of 18.45 percent in the price of gold in Dubai and India. But, if we go deeper then we will find that the customer does not save much in buying gold from Dubai.
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have to pay more money
Rajeev Popli, director of Popley Group of Jewelers, which runs jewelery stores in Dubai, says that the charge for making jewelery in India is only up to 7 percent. Whereas, in Dubai it is up to 25 percent. Apart from this, the value of Dubai’s currency dirham is also more than the Indian rupee. That is why Indians have to pay more money for buying gold in Dubai. Popley says that due to the high making charges, currency conversion fees and some other charges, if Indians buy jewelry in Dubai, they do not get any benefit even if the rate of gold in Dubai is cheaper than in India.
this is complete math
In India, the price of 1 gram of 22 carat gold is 4,656, while in Dubai it was available for Rs 4,250 on 19 September. Accordingly, for any jewelery of 20 grams of gold, Rs 93,190 will have to be paid in India while Rs 85,040 in Dubai. In India, 3 percent GST was applied on it, then its net price became Rs 95,914. On the other hand, if VAT is refunded in Dubai, then even after VAT, additional money is not charged.
Making charges in India are 7 percent and in Dubai 25 percent. After making charges, the price of 20 grams of jewelery will be Rs 1,02,758 in India including GST. At the same time, its price in Dubai will be Rs 1,06,300. In India, if you have to pay in rupees only, then there will be no additional burden. At the same time, due to the difference in the value of dirham and rupee in Dubai and currency conversion charges, additional money will have to be paid. With this, the price of jewelery purchased from Dubai will increase to Rs 1,10,021. In this way, buying jewelery from Dubai in India will have to pay more money.
Tags: business news in hindi, Gold, Gold Rate, Personal finance
FIRST PUBLISHED : September 28, 2022, 13:26 IST