The Hindu : Business : Call to reduce VAT on gold ornaments

Online edition of India's National Newspaper
Saturday, Dec 08, 2007
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Call to reduce VAT on gold ornaments

Staff Reporter

KOLLAM: Kalyan Group chairman T.S. Kalyanaraman has called upon the State government to reduce the VAT on gold ornaments from the present 4 per cent to 1 percent. He was addressing a press conference here on Wednesday in connection with the inauguration of a Kalyan Jewellers showroom in Kollam city on November 9. Mr. Kalyanaraman said the 4 per cent tax was one of the main reasons why customers did not want their purchases to be billed.

Hence, jewellery owners were compelled to issue only an estimate in the place of a real bill, he said. In Tamil Nadu, the VAT on gold ornaments was 1 per cent and almost all customers there insist on a bill.

He said reduction of VAT on gold ornaments will encourage customers to ask for a bill. He also welcomed the hallmarking scheme of the Bureau of Indian Standards (BIS).

The system would not only be a guarantee on 916 quality ornaments but also will help bring the much-awaited end to the unhealthy competition in the gold trade sector. He said all his showrooms sold only BIS 916 gold.

The Kalyan Jewellers showroom at Kollam will be inaugurated by actor Mammootty who is also the brand ambassador of Kalyan Jewellers.

It will be the seventh showroom of the group. Mr. Kalyanaraman said the group planned investing Rs.1000 crore in the next four years for expansion.

Out of this, Rs.300 crore will be invested in the State.

Thirteen more showrooms will be opened by the group across Kerala and Tamil Nadu.

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