Finance, Forex and Investments

Gold purchase bill has VADD?

Recently i had purchased Gold of "X" gram, the price for the gold of 22 carrot on the day was 2460 INR, as per the price the purchased gold jewellery should cost around XXXX.00 INR. When i asked the cost of that jewellery i came to know its 19% of VADD added for the gold which made the my shopping very high com paired to the market price. I want to know what is this VADD%, is it has to be put in Customers shoulder? Also i want to know what all a customer has to know before buying Gold Jewellery from any jewellery Shop . I had search through the google but no Information i got. Please help me out, its in Indian Market , hope some one from India can answer better. Thanks a lot.

Public Comments

1. OK, you did not get an answer from India, so let me take a crack at it here from California. It was always my understanding that gold bullion, precious stones and other precious metals bought for investment purposes in India had only a VAT of 1% of the purchase price. This may in fact be different in certain states. Your high rate of 19% may be because you bought jewelry, a consumer commodity, and not gold bullion for investment. You may try for a refund. Try these links for further info: http://en.wikipedia.org/wiki/Value-added_tax http://finance.indiamart.com/taxation/items_covered_in_indian_vat.html http://indiavatrefund.com/india_vat_rate.html