I-T raids lead to vain efforts as RSBL hand over proof of fair bullion deals

RSBL (RiddiSiddhi Bullion) is well known Indian bullion organization, operating within the heart of the gold trading hub, Zaveri Bazaar. The company offers real time OTC physical bullion trading at spot (RSBL SPOT) and if clients do not require delivery, the purchased bullion can be stored securely at no extra cost.

Founded in 1994, RSBL is proud of holding the largest variety of bullions and coins across India. During the year, 2013, Around 100 officers from the income tax (I-T) department raided 56 locations of RiddiSiddhi Bullions Ltd (RSBL), over hawala links and examined documents related to the company's import and export of bullion. I-T also investigated the company's alleged link with betting on the Indian Premier League (IPL).

This sweep was conducted as routine I-T survey, which had no connections with the IPL, hawala links or bogus import-export of precious metals at all. This survey had been done across various companies in Mumbai and not only at RSBL.

Furthermore, RSBL company is extending full co-operation with I-T officials and presented legal proofs of their import-export transactions which were approved and accepted by the Court. RSBL specialises in bars and coins in popular precious metals such as gold, silver and platinum. The company primarily focuses online sales of coins and delivers to customers' doorsteps.

Its bullion sales through e-commerce - RSBL Spot - through over 2,500 locations covering almost all
cities and major towns across the country has been very popular among jewellery manufacturers and
retailers for competitive pricing and prompt delivery. Individual consumers have also opted for online gold coins purchase from RSBL Spot.

Gold 2017 Long term Investment allocation

The Indian gold industry is considered to be one of the largest industries in the world. The industry has witnessed a lot of ebb and flows last year, right from excise duty rates to introduction of PAN card for purchase of gold and the demonetisation drive. All these factors, along with introduction of goods and services tax (GST) and the election of Donald Trump as US president will together frame the outlook for gold in 2017.

Experts say the government can clarify that if women inherit gold up to 500 gm, it can be considered as ‘stree dhan’ (women’s property). And if such inheritance can be supported by documents — bills or will of gift, deed etc — then such gold, when deposited under the GMS, no questions on the source will be asked.  There are still a few measures on which the government is working. The first is compulsory hallmarking of jewellery. The government now has the powers to penalise the holders of jewellery that is not hallmarked. However, early this month the government prescribed that only three standards will be followed and 14-, 18- and 22-carat jewellery could be hallmarked.

This year India will implement its own gold standards. This means gold refined by Indian refiners following prescribed standards will be accepted as valid tenderable gold in accordance with Indian standards on commodity exchanges and international markets. At present the global benchmark for refined gold is the gold standard fixed by the London Bullion Market Association (LBMA)

The government’s fight against black money and corruption began with the income declaration scheme. The denomination of R500 and R1000 notes is a sequel to same and we support this relentless fight against corruption. Demonetisation is definitely going to leave its effect in the initial months of the coming year. We may not achieve a good sales figure in comparison to previous years, but the aspiration that people have for the yellow metal, makes jewellery buying an important part of the season. Besides, it is a good time to invest in gold as the rates are low and it is expected to be the same for the next quarter.

All these factors are having an adverse impact across the sector. However, high end jewellery brands are largely a part of an organised market and transactions are done on the basis of an invoice. Earlier, a large portion of the population bought gold jewellery for investment and also as a status symbol.

Gold purchases, of late, has been more need-based. In 2017, consumers’ preference would be more for lightweight jewellery with emphasis on innovative jewellery designs. Customers today prefer buying jewellery that they can actually wear rather than keeping it in the lockers. Everyone is looking to buy jewellery that can be worn, which largely includes earrings, chain and pendants, rings, nose rings, etc.

Riddhi Siddhi Bullion Ltd denies breach of violations from DGFT and ED

Riddhi Siddhi Bullion Ltd (RSBL), a city-based bullion trader, has come under the scanner of Enforcement Directorate (ED) for alleged violation of gold export-import norms of the Reserve Bank of India.

The development comes at a time when RSBL is fighting a legal battle over Rs 100-crore penalty, imposed by the Directorate General of Foreign Trade (DGFT), for not adhering to the RBI's export rule. RSBL on the other hand has submitted required proofs and  legal documentations affirming no involvement which has been approved by the court.

However, soon after the notice was issued, RSBL got relief from the Bombay High Court, which stayed the DGFT's order. RSBL also claimed it had no prior information about the new norms of RBI, at the time of the import order.

When contacted, RSBL chairman Prithviraj Kothari said the company has not received any such order.

In FY14, DNA stated that RSBL had imported 550 kg gold and as per the RBI circular, this entire quantity should have been exported back, however, it had shipped back only 350 kg while remaining 200 kg were supplied to the domestic market, thus concluding that the company violated NAC norms as well as the RBI circular, being ignorant that RSBL was not notified about the circular change and the import of goods took place under the RBI’s regulations before the circular change.

RSBL, in its reply to the notice, had said that they did not breach any conditions and have legal documentations supporting its goodwill.

Gold makes a steady start for 2017

Gold and silver were trading flat with marginal gains in early trade on the first day of Calendar 2017 due to lack of global cues amid subdued buying by jewellers, investors and industries.

The yellow metal was trading 0.20 per cent, or Rs 56, higher at Rs 27,501 per 10 gm at around 10.30 am (IST), while the white metal was trading 0.26 per cent, or Rs 103, higher at Rs 39,152 per 1 kg on the Multi Commodity Exchange (MCX).

However, silver declined by Rs 100 to Rs 39,300 per kg owing to reduced offtake by industrial units.

Traders said absence of cues from global markets which are closed, mainly kept gold prices unaltered here.

In the national capital, gold of 99.9 and 99.5 per cent purity ruled flat at Rs 28,300 and Rs 28,150 per 10 grams, respectively. It had lost Rs 200 on the last trading session of 2016 on Saturday.

SMC Investment and Advisors in a research note said, “Gold can move in the Rs 27,300-27,500 per 10 gm range while silver can move in the Rs 38,700-39,400 range in the near term.”

Gold prices eased on Friday as gains from a weak dollar was offset by profit taking at the end of a year in which bullion gained about more than 8 per cent, snapping three years of declines.

Director of RSBL, Prithviraj Kothari is of the view that since Gold prices tumbled to 10-month lows on December 15 after the Fed hiked interest rates, this signaled could be an expected rise in rates more quickly than previously anticipated in 2017.

#RSBL No tax on ancestral jewellery, purchase from disclosed income:

NEW DELHI: Amendments to the I-T laws do not seek to tax inherited #gold and #jewelry as also those items that are purchased through disclosed or agriculture income, the government said on Thursday.

The Lok Sabha earlier this week passed the #Taxation Laws (Second Amendment) Bill, which proposes a steep up to 85 per cent tax and penalty on undisclosed wealth that is discovered by tax authorities during search and seizure.

Dispelling rumours that jewellery would be covered under the amended law, the Central Board of Direct Taxes (CBDT) said the government has not introduced any new provision regarding chargeability of tax on jewellery.

"The jewellery/gold purchased out of disclosed #income or out of exempted income like agricultural income or out of reasonable household savings or legally inherited which has been acquired out of explained sources is neither chargeable to tax under the existing provisions nor under the proposed amended provisions," the CBDT said.

The Bill, which is currently under consideration of the Rajya Sabha, will amend Section 115BBE of the Income Tax Act to provide for a steep 60 per cent tax and a 25 per cent surcharge on it (total 75 per cent) for black money holders.

Another section inserted provides for an additional 10 per cent penalty on being established that the undeclared wealth is unaccounted or #blackmoney, taking the total incidence of levies to 85 per cent.

CBDT said: "Tax rate under section 115BBE is proposed to be increased only for unexplained income as there were reports that the tax evaders are trying to include their undisclosed income in the return of income as business income or income from other sources.

"The provisions of section 115BBE apply mainly in those cases where assets or cash etc. are sought to be declared as 'unexplained cash or asset' or where it is hidden as unsubstantiated business income, and the Assessing Officer detects it as such."

Source: TOI

Gold, silver prices surge as reaction to demonetisation and Trump win

Gold reclaimed the Rs 31,000-mark at the domestic bullion market after fresh offtake from investors and stockists, driven by the black money crackdown in India and a surge in global cues amid Donald Trump's victory in the US presidential election.

Silver reclaimed the Rs 45,000 mark by surging Rs 1,390 a kg on heavy speculative rally.

Globally, gold prices jumped nearly five per cent on the Donald Trump victory in the US, prompting a dive in stocks and the dollar.

In India, standard gold (99.5 purity) spurted by Rs 815 to end at Rs 31,145 per 10g, a  level not seen since September 20.

Pure gold (99.9 purity) also climbed by a similar margin to close at Rs 31,295 per 10 grams as compared to Rs 30,480 earlier. Silver (.999 fineness) finished at Rs 45,370 a kg from Rs 43,980 on Tuesday; the current level was not seen since September 12.

London spot gold vaulted to a six-week high of $1,337.40 an ounce, up nearly five per cent.

That apart, despite the government having scrapped legal tender of Rs 500 and Rs 1,000 currency notes, jewellers at the benchmark Zaveri Bazaar here accepted these notes on Wednesday, at a huge premium in the gold price of 10-15 per cent. Deals were also reported at up to 50 per cent premium against high value notes on Wednesday. Noted were also accepted for delivery after two-three days. Many jewellers in the Mumbai suburbs kept their shops open till midnight on Tujesday and sold jewellery with a massive price premium (or discount in cash dealing with Rs 500 and Rs 1,000 notes).

Many consumers had panicked on Tuesday evening immediately after the announcement and rushed to jewellery shop in the vicinity with their cash. Trade sources believe some small retailers ran out of physical stocks. Many jewellers were quoting a gold price at Rs 34,500–35,000 (for 10g) in early Tuesday trade and making backdated bills. Traders were also heard quoting gold prices up to Rs 45,000 per 10g to panic customers.

“Nothing has changed since yesterday. The acceptance of Rs. 500/1,000 currencies continues, which we would deposit in the bank for their replacement with new ones,” said a jeweller in Zaveri Bazaar, on condition of anonymity.

In the official market, gold initially jumped around Rs 1,000 per 10g in pre-opening trade on Wednesday, following a 3.5 per cent increase in global markets on the Trump victory. Bullion, however, lost half its initial gain in afternoon trade in London, to quote at $1,303 an oz after a high of $1,367 an oz in the morning, following a sharp decline in the dollar against major global currencies. The dollar also recovered part of its initial loss.

At Zaveri Bazaar in the afternoon, the premium for official gold was $12, which on closing had moderated to $3 an oz.

Following reports of what jewellers had been up to, Sreedhar G V, chairman of the All India Gems and Jewellery Trade Federation, issued an advisory: “We urge jewellers to exercise restraint, caution and follow government-approved norms for transactions during the next few months.”

'The government's decision to ban old Rs 500 and Rs 1,000 notes will see people having more faith in the precious metal than currency notes. Though, the measure is going to be good for the country,” said Prithviraj Kothari, Managing Director, RiddiSiddhi Bullions.

Demonetisation: Jewellery sales take hit at Zaveri Bazaar

City's wholesale and retail market for bullion, Zaveri Bazaar, witnessed lacklustre trade today as sale of gold jewellery slumped owing to scrapping of Rs 500 and Rs 1000 notes by government as part of its clamp down on black money and corruption.

"After brisk buying at higher rates for gold till late night on Tuesday, the bullion market witnessed lacklustre trading activity today following ban on Rs 500 and Rs 1,000 notes. People are withholding their purchases of gold jewellery till higher denomination notes will come under circulation," said Ajit Shah, a leading jeweller.

"People are withholding their purchases of gold jewellery till higher denomination notes will come under circulation," said Ajit Shah, a leading jeweller."

The industry is already passing through bad phase due to lower demand despite ongoing wedding season. We hope things will improve in the near future, he said.

The demand for gold during 'Dhanteras', the gold buying festival and Diwali, remained moderate compared to last year.

Retailers in the city blame the slowdown in economy to global factors.

After a muted Navratri and Dusshera, gold demand saw a slight pickup, but it was mostly on the back of discounts and festive offers.

"Government's decision to ban old Rs 500 and Rs 1,000 notes will see people having more faith in the precious metal than the currency notes. Though, the measure has created havoc for a little while, it's going to be good for country," said RiddiSiddhi Bullions Managing Director Mr. Prithviraj Kothari. 

But perhaps, the biggest factor affecting domestic demand is the continued push towards regulation and accountability that the government is levelling in general, including the gold market.