Author: Paul Ploumis17 Oct 2014 Last updated at 08:14:48 GMT

MUMBAI (Scrap Monster): The Indian Government today announced marginal hike in import tariff value for gold. The import tariff value of gold was hiked by 1.3%, while that of silver was kept unchanged, in tandem with price of the precious metal in international market.

The Central Board of Excise and Customs (CBEC) issued notification in this regard raising the gold import tariff value to $401 per 10 grams. The import tariffs are being increased from the existing $396 per 10 grams. Meanwhile the import tariff value of Silver has been maintained at $575 per kilogram.

The government move to raise the import tariff value is in track with the rising gold prices in the global and domestic markets.

Meantime, gold extended gains in the domestic bullion market, supported by strong buying from stockists and retailers ahead of upcoming festival season. The price of Standard Gold (99.5 purity) surged by Rs 370 to end at Rs 27,520 per 10 grams. Pure Gold (99.9 purity) also jumped higher during the day to close at Rs 27,670 per 10 grams.

Tariff value is the base price on which the customs duty on imported gold or silver is calculated and it further helps prevent under-invoicing.