Banking News

Currency limit for purchase from duty-free shops increased

Currency limit for purchase from duty-free shops increased


The Central Board of Excise & Customs has amended the rules for purchase of goods from duty-free shops. The Government of India communication dated July 8, 2016, states that the Indian currency limit is increased purchase limit from Rs.5000/- to Rs.25000/- at duty-free shops. The above revision is in order to   avoid paying excessive exchange fees on foreign currencies by travellers to and from India.  It means that the travellers can use Rs.25000/- in Indian currency and rest of the payment can be made in foreign currency for their purchases.

The revised baggage rules allow duty-free import of chocolates, apparel, toys etc. up to Rs.50000/- per individual. The purchase beyond Rs.50000/- attract duty @ 36% even if bought from duty-free shops. The goods like flat TV, gold and silver are outside this baggage rule and therefore attract duty. The Government has earlier dropped the requirement of spending at least 3 nights overseas to be able to access the duty-free shop. The CBES instructed duty-free shops to display prices in Indian Rupees in addition to displaying prices in other foreign currencies. They are also required to display the rate of exchange published by the commercial banks for conversion of foreign currency or the rate of exchange notified by Central Board of Excise and Customs on a fortnightly basis for import and export of goods.

Duty-free shops (stores) can be found in the international zones of international airports, (Ex; Delhi International Airport, Kempegowda International Airport, Bengaluru etc. in India), Seaports, and several borders crossings (Ex: between USA, Canada, and Mexico). The travellers are allowed to purchase duty-free on board airplanes and passenger ships. The goods sold from duty-free shops to travellers who will carry them out of the country are exempt from local or national taxes/duties. However, the products which are sold duty-free  depending upon the location of duty-free shops.

Readers may click here, to know more about how much money they can carry abroad. .

 

No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *


Comments

Latest Tweets

error: Content is protected !!

Sign up for our News Letter

We will let you know when new articles are posted on this site.

Privacy Policy. This information will never be shared.