Jewellers unhappy over mandatory PAN on purchase of Rs 2 lakh

The All India Gems and Jewellery Trade Federation (GJF) today expressed dissatisfaction over the government's decision to make PAN card mandatory on any transaction of Rs 2 lakh and above.
"This is not practical and will discriminate 70 per cent of rural buyers, including farmers as they are not under tax net and do not have PAN cards.
"We also urge the government to remove pan card requirement for jewellery sector and maintain status-quo on application of tax collected at source (TCS) on sales of bullion on Rs 2 lakh and on Rs 5 lakh of jewellery",GJF Chairman Sreedhar GV said in a release issued here.

He said there is also a need to reduce import duties on bullion, gems, jewellery and jewellery machineries.
Unveiling the new norms, Revenue Secretary Hasmukh Adhia yesterday said on purchasing jewellery or bullion, a major source of black-money, quoting of PAN would be required if the sum involved is Rs 2 lakh per transaction.
Currently, PAN is required for transaction of Rs 5 lakh and above.

All other cash transactions would attract the PAN requirement if they are above Rs 2 lakh.
Quoting PAN will be mandatory from January 1, 2016 for cash payment made to settle hotels bills or for buying foreign travel tickets of Rs 50,000 as the government tightened disclosure norms to check generation of domestic black money.

"The gems and jewellery sector is not a source to attract black money since there is a value addition of 15-20 per cent in developing the products, while bullion is a preferred segment for investment by black money holders. Today, people buy jewellery items not only for their daily uses but also for essential purposes like festive and religious functions, including marriages," Sreedhar added.
The government needs to come up with more trade and industry friendly policies where industries can develop and grow to build the economy, he said.
Echoing similar views, GJF Director Bachhraj Bamalwa said:"The gems and jewellery sector is not the generator of black money. More than 80 per cent of the value of jewellery is raw materials like gold and silver, which are legitimately imported in the country."

It is a negative step for the industry as this would neutralise benefits of monetisation scheme, GJF Director Ashok Minawala said.
"As of March 31, 2015, there are approx 22.3 crore PAN cards issued in India. Will it be justifiable to ask for a pan card to approximately 89-90 per cent of the population, who do not possess one", he asked.