Synopsis :- With a view to provide significant relief to diamond merchants, the Municipal Corporation of Greater Mumbai (‘MCGM’) which is the municipal authority governing the jurisdiction of Mumbai, has come out with a circular (Circular No. AC/8/OSSC dated 31 March 2011) to reduce the rate of octroi on Gems and Jewellery items from 2% to 0.01% advalorem.
The Standing Committee / Corporation of the MCGM vide their resolution under SCR No. 1461 dated 11 March 2011 & CR No. 1122 dated 29 March 2011 have accorded their approval to reduce the rate of octroi from 2% advalorem to 0.01% advalorem for the gems and jewellery items effective at the point of import at the Custom Station/s of Mumbai with effect from 1 April 2011.
It is stated in the Circular that the reduction in the rate of Octroi is on experimental basis and for a period of 1 year w.e.f. 1 April 2011. MCGM reserves the right to increase the rate of octroi in case the desired revenue is not received on such imports into Mumbai.
LEVY OF OCTROI ON GEMS AND JEWELLERY ITEMS IMPORTED INTO MUMBAI
1 Schedule Of Articles Covered
The reduced octroi rates shall be applicable in case of the following articles specified in Chapter 71 of Octroi Schedule H
|Sr. No.||Schedule-H Item / Tariff No.||Description of Articles|
|1||7101||Pearls, Natural or cultured, whether or not worked or graded but not strung, mounted or set;
pearls, natural or cultured, temporarily strung for convenience of transport.
|2||7102||Diamonds, whether or not worked, but not mounted or set.|
|3||7103||Precious stones (other than Diamonds) and semi-precious Stones, whether or not worked, graded but not strung, mounted or set; ungraded precious stones (other than diamonds) and semiprecious stones, temporarily strung for convenience of transport.|
|4||7104||Synthetic or reconstructed precious or semi-precious stones whether or not worked or graded but not strung, mounted or set, ungraded synthetic or reconstructed precious or semi precious stones,
temporarily strung for convenience of transport
|5||71131930||Articles of jewellery of Gold, set with diamonds.|
|6||7116||Articles of natural or cultured pearls. Precious or semi-precious stones (natural, synthetic or reconstructed)|
2. Procedural Aspects
WITHDRAWAL OF THE EARLIER ORDER FOR EXEMPTION FROM OCTROI