DRAFT FOR LAWYER REVIEW — Pending Legal & Tax Sign-Off
This exchange and buyback terms document is subject to CA/lawyer verification regarding GST margin scheme application (Rule 32(5)) and second-hand precious metal handling.
Exchange & Buyback Policy
Last Updated: September 2026 | In-Store Valuation at Lower Roop Nagar, Jammu | Ambika Jewels
1. Principles of Precious Metal Value Preservation
At Ambika Jewels, we believe fine gold and natural diamonds are enduring assets passed across generations. We offer fair, transparent lifetime exchange and buyback terms for all fine jewelry purchased from our showroom or website.
2. Gold Jewelry Exchange (22K, 18K & 14K)
Exchange Value Calculation: Net gold weight (excluding stones, enamel, and foreign material) calculated at 100% of the prevailing showroom bullion rate on the day of exchange.
Standard melting/refining deduction: 2% to 3% on Ambika Jewels hallmarked gold (5% on third-party old gold). Making charges, stone charges, and previously paid GST cannot be refunded or credited towards exchange value.
*GST Treatment Note: Confirm with CA whether second-hand gold exchange is taxable on full turnover or under the margin scheme.
3. Diamond & Solitaire Exchange Terms
Natural Diamond Exchange: 90% credit value of the prevailing diamond market rate against exchange for another diamond piece.
Cash Buyback: 80% valuation of prevailing market rate for certified natural diamonds, subject to original certification handover (SGL/IGI/GIA) and physical inspection.
4. Testing & Verification Protocol
All buyback and exchange transactions must be conducted in person at our physical showroom in Lower Roop Nagar, Jammu:
- Non-Destructive XRF Purity Testing: Every piece is analyzed in front of the customer using calibrated laboratory XRF spectrometry to verify exact karat purity.
- Mandatory KYC Documents: The customer must present original government photo identification (Aadhaar / Voter ID / Passport) and PAN card for buybacks exceeding statutory thresholds.
- Proof of Purchase: Original tax invoice and hallmark certificate issued by Ambika Jewels must be provided.
5. Payment Settlement & Anti-Money Laundering
In strict compliance with Income Tax Act Section 269ST and PMLA guidelines, buyback disbursements above ₹10,000 are settled exclusively via account-payee NEFT/RTGS bank transfer to the registered customer's verified bank account. No cash disbursements exceeding statutory limits are permitted under any circumstances (verify with CA).