Mrs. Rita Teaotia, Commerce Secretary, Government of India had wide ranging discussions on issues affecting the industry with a delegation from GJEPC during her recent visit to Mumbai on the occasion of IIJS in early August. This was the first detailed interaction she has had with the industry after assuming charge. The Commerce Secretary was accompanied by Shri Siddharth, Jt Sec and Ms Rupa Dutta, Economic Adviser, Ministry of Commerce.

The GJEPC made a presentation on the role played by the industry and its contribution to the Indian economy in terms of foreign exchange earnings and employment generation, highlighting the leading role played by India, as well as GJEPC in the global diamond and jewellery industry.

Some of the key issues taken up for discussion were:

• Taxation issues related to the SNZ
• Taxation issues related to Transfer Pricing, Import of customised software for processing machines, transactions with regard to derivatives
• Introduction of Presumptive Tax for diamond industry
• Separate ITC HS Code and Customs Duty for Synthetic diamonds
• Inclusion of industry under Interest Subvention scheme
• Changes in policies of SEZs as per the detailed recommendations submitted by GJEPC

Council representatives also presented the key contours and benefits of the India Diamond Trading Centre (SNZ) being set up with Bharat Diamond Bourse in Mumbai, and the Common Facility Centres being established in Gujarat, as well as some of the key recommendations they had made regarding ECGC policies.

The Commerce Secretary has promised to study all the issues that have been raised and assured all assistance resolving them, particularly pressing matters related to the SNZ etc.