 "'New PAN norms to hit gems and jewellery sector'")
The finance ministry's new norms requiring consumers who purchase jewellery worth above Rs 2 lakh to quote their permanent account number (PAN) could badly hit the gems & jewellery sector, according to All India Gems and Jewellery Trade Federation (GJF). Instead, the existing norm - of quoting PAN for transactions above Rs 5 lakh - be raised to Rs 10 lakh, the federation demanded.
The new norm, which was announced by the finance ministry recently, would be effective from the next calendar year. The finance ministry has retained the limit for bullion at Rs 2 lakh. According to GJF chairman G V Sreedhar, the body does not have any problem for the requirement of bullion. However, PAN requirements for value-added products such as jewellery could spell a disaster for the sector, he said. Jewellers also do not have problems with any limit for PAN for business-to-business transactions. he added.
"Rather than curbing black money, the new requirement would enhance it," said Sreedhar, "because the trade would shift to the unorganised sector". According to him, black money is used for buying bullion and not jewellery.
According to GJF, 70 per cent of the jewellery trade is in rural areas, where most people do not have PAN as agriculture income is exempt from income tax. "Will it be justifiable to ask for a PAN card to 80-90 per cent of the population who do not possess one?" Minawala asked.
The finance ministry had raised the limit for PAN-less transaction in the real estate sector from Rs 5 lakh to Rs 10 lakh. The federation wanted the jewellery sector, too, should be treated in similar fashion. According to GJF, the real estate sector is not reported at its true value, while jewellery transactions are.
Gold imports likely to touch 1,000 tonnes
On the back of a sharp fall in gold prices globally, India is likely to see an 11 per cent jump in imports of the metal to 1,000 tonnes this year, says All India Gems and Jewellery Trade Federation. It says the country - the world's second-biggest gold consumer - had imported around 900 tonnes in 2014.
"Gold import is estimated at 1,000 tonnes in 2015 calendar year, compared to 900 tonnes last year. Imports are likely to increase because of low global prices," said the federation's chairman G V Sreedhar at an event here on Tuesday.
The new norm, which was announced by the finance ministry recently, would be effective from the next calendar year. The finance ministry has retained the limit for bullion at Rs 2 lakh. According to GJF chairman G V Sreedhar, the body does not have any problem for the requirement of bullion. However, PAN requirements for value-added products such as jewellery could spell a disaster for the sector, he said. Jewellers also do not have problems with any limit for PAN for business-to-business transactions. he added.
"Rather than curbing black money, the new requirement would enhance it," said Sreedhar, "because the trade would shift to the unorganised sector". According to him, black money is used for buying bullion and not jewellery.
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Currently, the industry size is Rs 2.5 lakh crore. If the PAN requirement is imposed, it would shrink 25 per cent a year, said Ashok Minawala, former president of the federation.
According to GJF, 70 per cent of the jewellery trade is in rural areas, where most people do not have PAN as agriculture income is exempt from income tax. "Will it be justifiable to ask for a PAN card to 80-90 per cent of the population who do not possess one?" Minawala asked.
The finance ministry had raised the limit for PAN-less transaction in the real estate sector from Rs 5 lakh to Rs 10 lakh. The federation wanted the jewellery sector, too, should be treated in similar fashion. According to GJF, the real estate sector is not reported at its true value, while jewellery transactions are.
Gold imports likely to touch 1,000 tonnes
On the back of a sharp fall in gold prices globally, India is likely to see an 11 per cent jump in imports of the metal to 1,000 tonnes this year, says All India Gems and Jewellery Trade Federation. It says the country - the world's second-biggest gold consumer - had imported around 900 tonnes in 2014.
"Gold import is estimated at 1,000 tonnes in 2015 calendar year, compared to 900 tonnes last year. Imports are likely to increase because of low global prices," said the federation's chairman G V Sreedhar at an event here on Tuesday.