Beware of Expatriates Buying Gold from the Gulf;  The Quality is Better, the Price is Less… But There is a Catch

Dubai: There are very few expatriates who do not bring gold jewellery when they come home from the Gulf for a holiday.  Such ornaments and coins are brought to please the people at home or to be kept as an asset.  One thing is that gold is cheaper in the Gulf than it is back home.  Moreover, quality gold will be obtained.

This is the reason for attracting expats.  Jeweller’s are implementing many attractive projects targeting expatriates. But there are a few things to keep in mind while bringing gold like this. If you don’t know these things, you will have to figure it out…

There is a limit to the amount of gold that can be brought home. The amount of jewellery that men and women can bring is different. Violators will have to pay tax.  Or get caught. A huge fine will be charged.  There are many people who bring gold home by cutting documents. These are the people who get caught at the airport.

The central government has imposed strict restrictions on gold reaching the country.  The government’s action is aimed at discouraging large-scale access to gold.  The government has increased the import duty. When you add up the numbers like that, buying gold from the Gulf doesn’t make much sense.

There is no restriction for women to bring home gold worth Rs. It is tax free. But payment of tax is mandatory after the limit is exceeded. Men can bring only Rs 50,000 worth of gold tax-free. One kg gold bar or coin can be brought after paying customs duty.

Import of gold is possible based on the length of stay in the Gulf and the time limit of stay in the country.  It is not possible to bring gold by staying in the Gulf for only a few days. A passport holder can import gold. The value of the gold on the day it is brought will be taken as the price. Tax is to be collected accordingly. Documents of this should also be kept.

The proof of where the gold was purchased should be stamped on the gold bar. Such transaction should not be done from illegitimate entities. There should be a stamp stating how much it weighs and who made it. Considering taxes and other charges, importing gold from the Gulf to the country is not very profitable.

Meanwhile, gold prices have been falling in Kerala for the past few days. There was a drop of Rs.1000 in three days. Here the decline is due to the change in the American economy. Moreover, the increasing value of the dollar and the falling value of the rupee are reflected in the market.