Rough Diamond Display in Bharat SNZ not Taxable

(IDEX Online News) – India’s Central Board of Direct Taxes (CBDT) has announced that the display of rough diamonds at the Special Notified Zone (SNZ) in the Bharat Diamond Bourse will not be taxable from April 2015 onward, according to a report in The Economic Times.

India’s Finance Ministry announced that under the provisions of the Income Tax Act 1961, it decided that “the activity of mere display of uncut diamonds (without sorting or sale) inside a Special Notified Zone carried out on or after April 1, 2015 shall not be taxable.” A legislative amendment to this effect will be carried out through the Finance Bill 2016.

It is thought that the government took the decision with regard to the taxation of rough diamonds in a bid to attract global diamond mining companies.

Diamond miners have been allowed to sell goods in the SNZ established in the Bharat Diamond Bourse since July 1.