Technoglitch
Core Member
A jewellers’ federation has opposed the government’s decision for mandatory furnishing of PAN details for transactions above Rs 2 lakh. The measure has been introduced to curb the flow of black money into the system and discourage the use of cash transactions for high-value purchases.
The All India Gems and Jewellery Trade Federation (GJF), national trade federation of the gems and jewellery sector, said the decision would hurt the industry and prevent people from rural India from purchasing gold ornaments.
“This is not practical and will discriminate against 70 per cent rural buyers, including farmers, as they are not under tax net and do not have PAN cards. We urge the government to remove PAN requirement in the jewellery sector and maintain status quo on application of TCS on sale of bullion worth Rs 2 lakh and jewellery worth Rs 5 lakh,” GJF chairman Sreedhar GV said in a statement.
“The gems and jewellery sector does not attract black money since there is value addition of 15-20 per cent in developing the products while bullion is the preferred segment for investment by black money holders. Today, people buy jewellery items not only for their daily use but also for essential purposes such as festival and religious functions, including weddings,” he said.
Overall, the GJF said the decision on requirement of PAN was not fair and justifiable under law as it tantamount to discrimination against a large number of people who did not have PAN. In India, hardly 8 to 10 per cent of the population had PAN, it said.
“The gems and jewellery sector is not a generator of black money. More than 80 per cent of the value of jewellery is raw materials such as gold and silver, which are legitimately imported,” said Bachhraj Bamalwa, director, GJF. The jewellery sector will find it difficult to encourage buyers to visit showrooms due to the new restrictions, said Ashok Minawala, director, GJF.
Jewellers oppose PAN for deals over Rs 2 lakh - The Hindu
The All India Gems and Jewellery Trade Federation (GJF), national trade federation of the gems and jewellery sector, said the decision would hurt the industry and prevent people from rural India from purchasing gold ornaments.
“This is not practical and will discriminate against 70 per cent rural buyers, including farmers, as they are not under tax net and do not have PAN cards. We urge the government to remove PAN requirement in the jewellery sector and maintain status quo on application of TCS on sale of bullion worth Rs 2 lakh and jewellery worth Rs 5 lakh,” GJF chairman Sreedhar GV said in a statement.
“The gems and jewellery sector does not attract black money since there is value addition of 15-20 per cent in developing the products while bullion is the preferred segment for investment by black money holders. Today, people buy jewellery items not only for their daily use but also for essential purposes such as festival and religious functions, including weddings,” he said.
Overall, the GJF said the decision on requirement of PAN was not fair and justifiable under law as it tantamount to discrimination against a large number of people who did not have PAN. In India, hardly 8 to 10 per cent of the population had PAN, it said.
“The gems and jewellery sector is not a generator of black money. More than 80 per cent of the value of jewellery is raw materials such as gold and silver, which are legitimately imported,” said Bachhraj Bamalwa, director, GJF. The jewellery sector will find it difficult to encourage buyers to visit showrooms due to the new restrictions, said Ashok Minawala, director, GJF.
Jewellers oppose PAN for deals over Rs 2 lakh - The Hindu
