New Delhi. Importers have found a new way to import gold into India without paying any tax. They have found this way through a loophole in the country's law. Gold importers are bringing gold to India from countries like Thailand, Indonesia and Tanzania in the form of 'platinum alloy'. Legally, alloys that contain more than two percent platinum do not have to pay any tax on import from some countries. These countries also include Thailand, Indonesia and Tanzania. Taking advantage of this loophole in the law, importers now mix 2 percent or more platinum in gold and call it 'platinum alloy' and avoid import duty. 6 percent duty is levied on gold import.

There is no tax on platinum alloys coming from countries like Thailand, Indonesia and Tanzania. This is because India has a free trade agreement with ASEAN countries. Also, India has kept the import duty zero to promote trade with many less developed countries. Due to this, there is no tax on the import of platinum alloys from these countries. 5 percent tax is levied on platinum alloys when imported from the United Arab Emirates.

Data reveals the secret
According to a report by Moneycontrol, some importers in Delhi and Gurgaon area have become masters of this new route. They are importing gold in the form of platinum alloy via countries like Thailand, Indonesia or Tanzania. Data from Directorate General of Intelligence and Statistics (DGCIS) also confirms this. Till July this year, the import of platinum alloy brought from Tanzania in raw and semi-manufactured form was almost zero. But in August it increased to 267 kg. The route through Thailand and Indonesia has started being used since last November.

People aware of this entire racket said that after bringing gold to India in the form of platinum alloy, they refine this metal again and extract gold from it and sell it in the market. Moneycontrol has seen a copy of an importer's bill. The bill states that the seller was from Thailand and the importer had bought about 80 kg of platinum alloy from him in semi-manufactured form. More importantly, the platinum alloy he imported contained 89 percent gold, 4 percent platinum and the rest was other materials used to prepare the alloy.