Shanghai traders upbeat over tax break

Shanghai July imports up at 8,000 ct, valued at $ 7.38 mn

Post By : Diamond World News Service On 24 August 2006 12:00 AM
A number of unnamed diamond export firms in Mumbai are under investigation for taking advantage of the governments target plus incentive, according to the Business Standard. The newspaper estimates that the turnover of the six firms under investigation generated between Rs 8,000-10,000 crore. Indias department of revenue told Business Standard that the six companies were routing cut and polished diamonds between India and Dubai. These firms buy diamonds and undertake operations like sieving and sorting in Mumbai to fulfill the minimum value-addition norms, the report stated.%%The diamonds are sent back to Dubai for sale within a few hours, but then returned again to Mumbai. It seems that the turnover figures rose astronomically, and yet in terms of carats there were no changes on the companies exports. The target plus scheme was introduced to provide credit to exporters based upon a percentage of growth year to year. Credit of 5% was give for growth of 20-25%, and 10% was given for growth rates of 25-99%, and 15% credit was given for export growth of 100% or more.%%To date India issued credit of approximately Rs 3,000 crore. It states that the credits would have been much higher had investigators not caught on to dealer activities.

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