Gold

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Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2011 is it that purchasing gold jewellery from dubai comes at a lesser price as compared when purchased on the same date in india? what is the difference in making charges? moreover the gold price shown is the wholesale price? when we buy we pay retail price, so how much will be the difference?

CS Bijoy

CS Bijoy (Expert)
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11 July 2011 According to me gold can not be purchased from outside India without any licence and in such case duty of custom will come and in case of tourist there is a limit of purchase to which a person can buy gold in outside India in excess of that liable to Custom Duty.
So I think there is no big deference.

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Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2011 this gold was brought as personal jewellery. i presume there is no GFA limit for personal jewellery.. the customs duties are applicable only for gold bars, etc.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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26 July 2024 Purchasing gold jewelry from Dubai versus India can often result in price differences due to several factors, including gold prices, making charges, and retail versus wholesale pricing. Here’s a detailed breakdown:

### 1. **Gold Prices**

- **Wholesale vs. Retail**: The price of gold is generally the same globally in terms of the spot price (the current market price), which is typically quoted as a wholesale price. However, retail prices include additional costs, such as making charges and the retailer’s margin. In Dubai, the retail price may be lower compared to India due to lower making charges and lower VAT/GST rates.

### 2. **Making Charges**

- **Dubai**: In Dubai, making charges (the cost of craftsmanship and design) are often lower compared to India. This is because Dubai has a competitive market for gold and jewelry, leading to lower making charges and often higher purity standards.

- **India**: In India, making charges can be higher due to various factors, including labor costs, local taxes, and the tradition of intricate designs which may increase the cost of craftsmanship.

### 3. **Difference in Prices**

- **Retail Pricing**: When you buy gold jewelry, you pay a retail price that includes the gold price plus making charges and the retailer's margin. In Dubai, the total cost for gold jewelry might be lower compared to India, primarily due to the lower making charges and lower VAT/GST rates.

- **Gold Price Difference**: The difference in gold prices between Dubai and India can vary. Typically, Dubai might offer gold jewelry at a lower cost because of its tax-free environment and competitive market.

### 4. **Customs Duties and GFA Limit**

- **Customs Duties**: For personal jewelry brought into India, customs duties are applicable based on the value of the jewelry. The duty rates and limits may vary, and you need to declare any jewelry brought into India above the permissible limits. For personal use, the GFA (Gold Financial Allowance) limit is generally not applicable. Instead, customs duties and regulations for personal imports apply.

- **Personal Jewelry**: If you bring gold jewelry into India, there is generally no specific GFA limit for personal jewelry, but you should be aware of customs regulations and duties. Customs duties are typically applicable for gold bars and bullion, but for personal jewelry, there may be a requirement to declare it if it exceeds certain thresholds.

### Key Points to Consider:

1. **Check Making Charges**: Before making a purchase, compare the making charges in Dubai and India. Dubai typically has lower making charges, which can contribute to overall savings.

2. **Understand Local Taxes**: Consider VAT/GST and other local taxes that might apply to gold purchases in both locations. Dubai usually has a lower tax rate compared to India.

3. **Customs Regulations**: When bringing gold jewelry into India, ensure you are aware of and comply with customs regulations to avoid any issues. Jewelry brought for personal use is subject to customs duty based on value and declaration limits.

The difference in cost due to making charges alone would be $1000 in this example.

By understanding these aspects, you can make an informed decision about purchasing gold jewelry from Dubai versus India and the potential savings involved.