Russia's Alrosa seeks tax benefit for diamond sales in India

Wants parity with Belgian levies to set up office in Mumbai for more sale of rough diamonds

Russian rough diamond miner Alrosa has sought tax neutrality from the government to set up its representative office in India.

Alrosa has started making small allocations through its intermittent exhibition of rough diamonds in the special notified zone at the Bharat Diamond Bourse. The company sells large quantities through Dubai and Belgium. 

Rough diamond allocations through Dubai attract zero tax and through Belgium 0.55 per cent of profits. India has a turnover tax through advance pricing of rough diamonds that is a multiple of the levies in Belgium.

Sources said Alrosa wanted taxes equal to Belgium to increase its supply