Bharat Diamond Bourse Discussion: Impact of India’s 2024 Budget on the Diamond and Jewellery Industry

Bharat Diamond Bourse (BDB) hosted an insightful Knowledge Session on the implications of India’s 2024 Budget on the diamond and jewellery businesses. The session featured esteemed speakers Mr. Rajendra IRS, former Member of the Income Tax Appellate Tribunal (ITAT) Mumbai, and CA Dr. Mitil Chokshi, Partner at Chokshi & Chokshi, a renowned tax consultant and advisor.

The event was attended by a notable audience of 140 industry members, both in person and virtually, reflecting the high level of interest and engagement within the diamond and jewellery sectors.

Key Discussion Points:

1. Direct Tax and Other Taxes: The speakers provided a comprehensive analysis of the changes in direct tax regulations and their impact on business operations within the industry.

2. Controversial Litigations: The session addressed ongoing and contentious tax litigations affecting the sector, offering insights into potential resolutions and strategies for managing such disputes and the Vivad Se Vishwas scheme for easy resolution of any pending disputes.

3. Global Implications and Cross-Border Taxation: A detailed exploration of the global tax landscape and its impact on cross-border transactions was discussed. The speakers highlighted how international tax reforms and agreements could influence the industry’s global operations. The speakers also highlighted how the reduction in tax rates for foreign corporates in India, could bring India at par with global standards.

4. NRI-Related Taxation: The discussion included a focus on the specific tax issues faced by Non-Resident Indians (NRIs) involved in the diamonds and jewellery trade, including recent changes and their practical implications, and stringent enforcement of the FDI policy for foreign investments.

5. Transfer Pricing: Insights were provided on the latest developments in transfer pricing regulations, their effect on intra-group transactions and pricing strategies within the industry, and how these developments could lead to an increase in transfer pricing litigation.

6. Indirect Tax Implications: The speakers reviewed changes in indirect tax laws and their potential effects on business costs, compliance, and overall financial strategies.

7. Special Notified Zone (SNZ): The safe harbor rule to simplify taxation rule on the sale of diamonds in SNZ by foreign miners along with the abolition of the equalization levy for bidding of rough diamonds online will enhance the ease of doing business. The session also highlighted the key issues involved with the introduction of the safe harbor rule.

Mr. Rajendra IRS, known for his extensive experience in tax adjudication, and CA Dr. Mitil Chokshi, a distinguished expert in taxation, provided invaluable perspectives and practical advice, equipping attendees with the knowledge to navigate the evolving tax landscape effectively.

In his remarks, the Vice President of Bharat Diamond Bourse, Mr. Mehul Shah, emphasized the importance of understanding the budget’s intricacies. “The Indian Budget plays a crucial role in shaping the economic environment in which our industry operates. Our goal with this session was to equip our members with the knowledge and tools necessary to navigate the changes effectively and seize new opportunities.”

Bharat Diamond Bourse remains committed to supporting its members by facilitating crucial discussions and providing timely information on key regulatory and economic changes. The event underscored the BDB’s role in fostering a well-informed and resilient industry.