Transaction Rules: Jewelers seek finding PM

The All-India Gems and Jewellery Trade Federation (GJF) says the Centre’s imposition in the requirement of a Pan card status on any transactions of Rs 2 lakh and above will probably affect rural demand. The federation that’s opposed this move has sought meetings while using prime minister, finance minister and finance secretary, and maintained likely to be given a hearing within the next few days.

The federation also says that your newly-tweaked gold monetisation policy is probably going to be out soon, that may involve jewellers as collection agents. In the new scheme, the jeweller would have the Know your Pan or customer (KYC) norms, collect silver, and stay authorised to issue a piece of paper of authentication.

According to G V Shreedhar, chairman, GJF, around 70% of jewelry buyers result from rural areas, and fall into the tax net or have pan cards, which may impact buying. “We urge government entities to remove the Pan card requirement within the jewellery sector and observe after status quo within the the application of TCS for the sales of bullion on Rs 2 lakh as well as on Rs 5 lakh of jewelry,” Shreedhar said.

The government must either exempt gems and jewellery from the element Pan cards or enhance the limit to Rs 10 lakh, or apply the standards prevalent inside the US, the location where the purchase of $10,000 is permitted without such requirements, he was quoted saying. A move on this nature will encourage the unorganised sector along with the organised sector will die, he added. “This industry, which is from the size of Rd 2,50,000 crore, has 70% of the business via rural buyers. This sector has become contributing 3.5% on the country’s GDP and therefore government entities needs to be considerate and fair,” Shreedhar said.

Ashok Minawala, director, GJF, asserted jewellers begins facing problems of encouraging buyers to travel to showrooms because from the new restriction. It is a negative step to the industry since this would neutralise benefits arising away from monetisation scheme and that is positive. As of March 31, 2015, roughly 22.3 crore PAN cards issued in India. “The government first must widen the pan card base after which bring in such steps gradually,” he explained.

On the gold monetisation scheme, Shreedhar remarked that jewellers are actually very supportive and following dynamics are resolved the scheme could soon gain momentum. For more information on PAN Card Verification please visit my website.

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