'City of Gold': Did you know children can bring more gold than men without paying customs duty?

DUBAI: The price of one gram of gold in Kerala today is Rs 9150. That is, the trading rate of one sovereign of gold is Rs 73,200. When the processing fee and GST are added, the price will reach above 80,000. Although there has been a slight decrease in the price in the last few days, the gold trading rate does not give any comfort to the common man as the wedding season is approaching.

Expatriates, including those from Kerala, see the UAE as a profitable centre for buying gold. Why is Dubai, which does not even have its own gold mine, called the city of gold? The main reason why so much gold is traded in the UAE is that there is no tax. Statistics indicate that India and our neighbouring country China are the largest buyers of gold from the UAE.

When compared to the price of gold in India, it is cheaper by up to Rs 350 per gram when buying from the UAE. For example, if the price in Kerala today is Rs 9150, the price of a gram in the UAE is Rs 8691. The main difference is that if you buy gold for Rs 2 lakh, you will get a profit of Rs 7000 compared to what you get in India. One thing to keep in mind when buying gold from the UAE is whether the gold has a Bareeq certificate issued by the Dubai Central Laboratory Department.

Although the price is low, there are restrictions

Although it is lower than the price in our country, there are restrictions on bringing gold from the UAE. If you want to bring more than a certain amount of gold, you have to pay duty at customs. The figure is set at 40 grams (five sovereigns) for women and 20 grams (two and a half sovereigns) for men. Although a bill is mandatory for gold, GST is not required.

Customs duty

Men have to pay three percent customs duty on 20 to 50 grams and women have to pay the same for 40-100 grams. In terms of tax, the tax is six percent for men on 50 to 100 grams and women on 100 to 200 grams. The figure is that if men bring gold above 100 grams, and if women bring gold above 200 grams, they pay up to ten percent.

Children under the age of 15 years can bring gold ornaments of a maximum of 40 grams without paying a customs duty.