While customs officials are apprehensive that they will have to be on their toes, bullion traders are unhappy that high duty will push up attempts to smuggle in gold by evading taxes and will lead to loss of jobs for local goldsmiths.Jewellers say smugglers, couriers and middleman can make as much as Rs 1,800 for every 10g of gold imported (6% of Rs 30,000).“With imports of 50kg, the margins can be as high as Rs 1 crore,” said a jeweller who did not want to be named. Jewellers say the government has seized close to 900kg of unaccounted gold in the last year.Prithviraj Kothari, managing director, RiddiSiddhi Bullions, said, “It will have a big impact on the bullion sector.The increase comes to approximately Rs 60,000 per kg of gold. There will be a difference of 7% between international and domestic prices of the yellow metal. This may lead to rise in malicious activities to import gold and jewellery. In turn, it will lead to an increase in unemployment among skilled artisans — around two million people depend on this sector for their livelihood.”Consumers will have to pay Rs 60 more per gram from Tuesday morning. “The wedding season has just begun and the hike will affect purchases,” said N Ananthapadmanabhan, regional chairman, All India Gems and Jewellery Trade Federation.Jewellers also anticipate under-reporting of business. “Many transactions will take place outside the books and such cash transactions without bills will not reflect in the overall turnover of the retailer,” he said. Gold prices in Chennai closed at Rs 30,715 (10g, 24 carat) on Monday.

http://articles.timesofindia.indiatimes.com/2013-01-22/chennai/36483298_1_import-duty-duty-on-standard-gold-prithviraj-kothari