As of March 8, the prices of gold differed considerably among various markets. In Dubai, gold was quoted at around Dh 3510 per 10 gram, and that is approximately 83,251.51. This was significantly lower compared to Hyderabad where the price for the same weight was almost Rs 87,710. Put differently, Dubai gold is almost 5.4 percent cheaper than in Hyderabad.
On the other hand, the global market, especially in New York, had gold being traded at a higher rate. With gold costing almost 2,917.6 per ounce, the price for 10 grams would be around USD 1033 or almost Rs 90,025 higher than Dubai and Hyderabad prices.
Tariff value, import duty
While importing gold to India, customs duty is determined on a tariff value defined by the government and not the buying price. At present, this tariff value is fixed around USD 927 per 10 grams which equates to nearly Rs 80,787.35. Gold import duty has been lowered to 6 percent from an earlier rate of 15 percent.
Cost advantages of importing gold
Importing gold from Dubai may prove cheaper than purchasing it in Hyderabad even after adding customs duties. The import duty on the tariff value of USD 927 per 10 grams would be approximately USD 55.62, or approximately 4,847.24. The overall cost, inclusive of duties, would be around USD 943 per 10 grams, or approximately Rs 82,181.74, which is still less than the Hyderabad price.
Gold import regulations
Indian travelers can carry as much as 1 kg of gold on international flights, subject to certain duty-free allowances. Men are allowed duty-free up to 20 grams, and women up to 40 grams, with some value ceilings. Children also have value ceilings and gender-based allowances.
Returning Indians who have spent at least six months overseas qualify for these allowances, subject to certain conditions relating to past exemptions and travel. Otherwise, importing gold in luggage is strictly prohibited.
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