India income tax authorities turn focus on ‘legal’ gold carriers

27 December 2013 | Khaleejtimes The smugglers have been paying Rs50,000 to Rs75, 000 and free air tickets to each carriers for successfully carrying one kg of gold to airports in the country. The move by the Indian tax authorities to put those bringing gold through legal channels into the country under scanner has rattled poor expatriates who serve as carriers for the smugglers. The commercial and income tax authorities have turned the focus on the carriers after almost every passenger on a flight from Gulf to Calicut in Kerala last week was found carrying 1 kg of gold with them. The gold that was brought after paying the required duty totaled 80 kg worth Rs240 million. The preliminary investigation by the authorities revealed that almost all the passengers who brought the gold were carriers used by smugglers. They turned to the poor labourers visiting home for bringing gold after the authorities intensified the vigil against smuggling in the airports. The smugglers have been paying Rs50,000 to Rs75, 000 and free air tickets to each carriers for successfully carrying one kg of gold to airports in the country. It is said that a smuggler is able to make a profit of Rs75, 000 on every kg of gold even after paying the duty and the commission to the carriers. The gold smuggled in this are sold to jewellery makers in Kerala, Tamil Nadu and Andhra Pradesh. The smugglers are able to find enough carriers to Kerala since there are a large number of Keralites in Gulf countries are unable to visit home due to high airfare. It is learnt that the smugglers have deployed agents in most countries to canvas carriers. The poor labourers agree since the gold brought by them is within the legal limits and they get a handsome return. However, the move by the tax authorities to investigate the person bringing the gold may bring them under the tax net. Experts say that the carriers may have to pay wealth tax if they declare that the gold brought by them for themselves. If they say the gold is sold they will be forced to pay the sales tax. In that case, they will also have to produce the documents for the sale. K V Shamsudheen, chairman of Sharjah-based Pravasi Baandhu Welfare Trust, says the carriers could face criminal proceedings if they say they have brought the gold for others. Shamsudheen said that most of poor labourers in the Gulf were serving as carriers for the smugglers unaware of the legal complications. He said the smugglers and their agents were recruiting them after making them believe that the operation is free of any risk. “They do not know they are taking a big risk for a small gain”, he added.