Spot gold exchange: SEBI writes letter to CBDT, CBIC; exchange likely by March next year, may attract less tax than stocks

By Tarun Sharma

There is a big news related to spot gold exchange. Zee Business earlier on 16th September had said that the Securities and Exchange Board of India (Sebi) may give green signal to the spot gold exchange. Reporter Tarun Sharma shares the full news.

Sharma said that now the Sebi has written letters to Central Board of Direct Taxation (CBDT), Central Board of Indirect Taxes and Customs (CBIC). Sebi has asked CBDT, CBIC to form a tax structure to make it simple and easy. The Sebi wants the tax structure to be different from the share market. As the gold is a high-value commodity and if it is framed according to the share market then it may not be viable.

For Income Tax structure, Sebi is consulting with CBDT. For GST, it is consulting with CBIC, he added. For Stamp duty, if the same structure is being followed as stock exchanges, then the amount on the gold spot will be huge. That is the reason Sebi wants to frame a tax bracket that should have separate consideration, Sharma said.

This will be the world's first exchange that will have trading on scripts, or electronic gold receipts (EGR). This will be expected to be the first-of-its-kind formula, which is different from securities, he added.

गोल्ड एक्सचेंज पर काम तेज
-SEBI ने CBDT, CBIC को लिखी चिट्ठी लिखी
-SEBI की दलील, शेयर के मुकाबले कम टैक्स होना चाहिए
-जनवरी से मार्च के बीच शुरू हो सकता है गोल्ड स्पॉट एक्सचेंज

जानिए पूरी खबर तरुण से... @MrituenjayZee | @talktotarun | #GoldExchangeSpot pic.twitter.com/dVEvoxJiL6

— Zee Business (@ZeeBusiness) October 5, 2021

Sharma said that it is expected that these formalities will be completed soon. Sebi is expected to launch this by the last quarter of the financial year (between January and March 2022). That is the reason Sebi is speeding up the process. It is also expected that the tax framing structure will be completed by end of this calendar year.

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Sebi also want to prepare this regulatory framework for other commodities as well, which will be not only for the gold but for the silver and diamond too.