Jewellers oppose PAN norm on sales; threaten to strike

[thesolar65]

ewellery association GJF today strongly opposed the Centre’s plan to make PAN card mandatory for any transaction over Rs 1 lakh, saying the move will hit their overall sales by up to 60 per cent and threatened to go on strike if the proposal is not rolled back.

As part of measures to curb black money, Finance Minister Arun Jaitley in his Budget speech said quoting of PAN is being made mandatory for any purchase or sale exceeding the value of Rs 1 lakh.

The All India Gems and Jewellery Trade Federation (GJF), which has about 6 lakh members, including 3 lakh jewellers, said the domestic gems and jewellery industry is worth about Rs 5 lakh crore. Of this, 80 per cent comes from the rural area where people largely do not have PAN.

“We strongly oppose this proposal. This will hit jewellers and 1 crore artisans employed in this industry badly. 60 per cent of the jewellery sales will be impacted if PAN card requirement on transactions over Rs 1 lakh crore is imposed,” GJF Chairman-Elect Manish Jain told reporters in Delhi.

Jain said the association has sought appointment with the Prime Minister and Finance Minister to share their grievances and hoped that the issue would be resolved.

Asked if government goes ahead with this proposal, Jain said: “Our members are agitated and they want to go on strike. We are pacifying them, but if the talks does not go on track, we will be forced to go on strike”.

He said the jewellers want to discuss this issue with the government and strike would be the “last option”.

GJF noted that TCS (tax collected at source) is already applicable on sales of bullion above Rs 2 lakh and jewellery above Rs 5 lakh and demanded that same regime should continue.

Stating that this proposal is impractical, Jain said “There are only about 14 crore Pan Card holders, which means that 89 per cent of the population does not have PAN cards. There are only 4 crore people who files Income Tax return.”

He argued that since there is no tax on farm income, about 70 per cent the population, who depends on agriculture do not have Pan cards.

Jain hailed the government’s various steps to curb black money including the gold monetisation scheme, but said this proposal of Pan card requirement will be counter-effective.

GJF Regional Chairman Vijay Khanna said this proposal will also discourage the NRIs, who don’t have PAN card, to purchase jewellery in India.

In Mumbai, GJF Director Ashok Minawala 70 per cent of rural sales and 50 per cent of urban sales would be affected with this decision. This will also encourage 80 per cent of industry to go back to the unorganised way of business format, he added.

@levina @45'22' @janon @scorpionx @Guynextdoor2 @SpArK @MilSpec @Rain Man @Skull and Bones @jamahir @Bornubus @wolfschanzze @Mike_Brando @Srinivas @TimeTraveller @halupridol @HariPrasad @gslv @Blue_Eyes @doppelganger @Bang Galore @kaku1 @Koovie @Ind4Ever @IND151 @SarthakGanguly @anant_s @jbgt90 @Dash @Ryuzaki @AUSTERLITZ @bloo @SRP @Roybot @Robinhood Pandey @AMCA @GR!FF!N @CONNAN @Tshering22 @Ivan @Screambowl @pursuit of happiness @Chanakya's_Chant @Manindra @he-man @SrNair @IndoCarib @third eye @Zebra @itachiii @KayAay @NKVD @GURU DUTT @Omega007 @kurup @JanjaWeed @nair @OrionHunter @jarves

I always wanted this. What is opinion about this? Are you for or against it. Most black money is also used to buy gold after land!! Gold is a favourite hiding material for small time corrupt Govt. officials (class-II and above) as land requires huge amount.

Negative point is parents are going to suffer during their daughters wedding!!. Of course they will give away the cash, but decorating bride with real gold ornaments will be difficult!!

 

[Lord ZeN]

jewellery association GJF today strongly opposed the Centre’s plan to make PAN card mandatory for any transaction over Rs 1 lakh, saying the move will hit their overall sales by up to 60 per cent and threatened to go on strike if the proposal is not rolled back.

Well it has it's pros & cons. It might affect the sales initially but if implemented properly it could curb the flow black money flowing through the precious metal industry. But i think the limit has to be increased to at least 2 lakhs for the mandatory transaction through PAN other wise it would backfire and ruin the industry.

 

[45'22']

This is actually good
Will help in preventing the flow of black money

 

[DrSomnath999]

i would post MY POV from different aspects of people

1) From GOVERNMENT's point of view

it's a wise move why??

- the goverment & IT department can keep an eye on citizen's expenses & it's relation to that guy's own personal income


- Any guy which tries to invest illegally in buying things like property/jewel/vehicle can be pointed /marked out in their
computerised accounts of PAN

blackmoney transaction can be controlled in a legalised way

2)From Trader's POV eg jewellers/ vehicle dealers/ property dealers/marriage ceremony expenses

-very bad for them as people & consumer would be alert/conscious of their financial transactions & fear of audit & tax evasions by giving false info of their incomes
so it might affect their sales negatively in long run


3)From Consumer Point of view

- very bad for people who dont have have PAN cards or whose income doesnt have capabilty to support such legalised monetary transactions of above 1 lakh ,they would have serious problems

-eg a college boy wants to buy a costly bike then it would have to use his father's pan card & buy in his name
or house wife also can face the same situation when she wants to buy a car for herself


CONCLUSION

Personally as a consumer POV i would oppose this move but if you have to curb black money transaction then it is required


CHEERS

 

[jamahir]

well, if i had to get myself a cuff-link pair or get a lady a necklace, it wouldn't be in gold purely.

i never really understood the hullaballoo over gold jewellery... though gold does look beautiful in ancient egyptian artistry where it is combined with other colors/materials, gold never appealed to me beyond this.

someone long back decided that gold is supposedly an expensive item that can be used as supplement to currency... yet others decided to print currency in gold.

beyond the use of gold in electrical circuits and other possible industrial usages, gold must be prohibited.

think about it... so much reduction in corruption and injustices and miseries... anyway, money system is artificial and anti-natural.

 

[IndoCarib]

I dont buy GJF's argument that in rural areas people largely do not have PAN. Well, they will have to get one if they want to make a purchase.

 

[wolfschanzze]

Most of the rural tax payers are exempted from tax if they are below the Income tax bracket.
So,how will they be affected?They will still buy the same thing.
We have to move forward with times and get PAN cards and ID proofs for everyone, it helps in
1)Checking flow of Black money.
2)Can be used to weed out illegal Bangladeshis and others.
If GOI wants to implement the Jan Dhan Yojana they have to digitize info of every citizen and hold a record, it will help in Checking Infiltration and the flow of Money for Subversive elements and also tackle these NGO's who are indulging in Nefarious activities.

 

[thesolar65]

Well it has it's pros & cons. It might affect the sales initially but if implemented properly it could curb the flow black money flowing through the precious metal industry. But i think the limit has to be increased to at least 2 lakhs for the mandatory transaction through PAN other wise it would backfire and ruin the industry.

You have just around 2.00 lakhs of unaccounted money with you. Don't you??

 

[magudi]

This is a good move IMHO

Government should rein in on these GJF commies with an iron fist.

 

[anant_s]

Well in my area, jewelers have already gone on stir and protested to oppose the move. But logically speaking, the move is a good one and considering govt's intention of curbing black money, it is a must.

 

[HariPrasad]

ewellery association GJF today strongly opposed the Centre’s plan to make PAN card mandatory for any transaction over Rs 1 lakh, saying the move will hit their overall sales by up to 60 per cent and threatened to go on strike if the proposal is not rolled back.

As part of measures to curb black money, Finance Minister Arun Jaitley in his Budget speech said quoting of PAN is being made mandatory for any purchase or sale exceeding the value of Rs 1 lakh.

The All India Gems and Jewellery Trade Federation (GJF), which has about 6 lakh members, including 3 lakh jewellers, said the domestic gems and jewellery industry is worth about Rs 5 lakh crore. Of this, 80 per cent comes from the rural area where people largely do not have PAN.

“We strongly oppose this proposal. This will hit jewellers and 1 crore artisans employed in this industry badly. 60 per cent of the jewellery sales will be impacted if PAN card requirement on transactions over Rs 1 lakh crore is imposed,” GJF Chairman-Elect Manish Jain told reporters in Delhi.

Jain said the association has sought appointment with the Prime Minister and Finance Minister to share their grievances and hoped that the issue would be resolved.

Asked if government goes ahead with this proposal, Jain said: “Our members are agitated and they want to go on strike. We are pacifying them, but if the talks does not go on track, we will be forced to go on strike”.

He said the jewellers want to discuss this issue with the government and strike would be the “last option”.

GJF noted that TCS (tax collected at source) is already applicable on sales of bullion above Rs 2 lakh and jewellery above Rs 5 lakh and demanded that same regime should continue.

Stating that this proposal is impractical, Jain said “There are only about 14 crore Pan Card holders, which means that 89 per cent of the population does not have PAN cards. There are only 4 crore people who files Income Tax return.”

He argued that since there is no tax on farm income, about 70 per cent the population, who depends on agriculture do not have Pan cards.

Jain hailed the government’s various steps to curb black money including the gold monetisation scheme, but said this proposal of Pan card requirement will be counter-effective.

GJF Regional Chairman Vijay Khanna said this proposal will also discourage the NRIs, who don’t have PAN card, to purchase jewellery in India.

In Mumbai, GJF Director Ashok Minawala 70 per cent of rural sales and 50 per cent of urban sales would be affected with this decision. This will also encourage 80 per cent of industry to go back to the unorganised way of business format, he added.

@levina @45'22' @janon @scorpionx @Guynextdoor2 @SpArK @MilSpec @Rain Man @Skull and Bones @jamahir @Bornubus @wolfschanzze @Mike_Brando @Srinivas @TimeTraveller @halupridol @HariPrasad @gslv @Blue_Eyes @doppelganger @Bang Galore @kaku1 @Koovie @Ind4Ever @IND151 @SarthakGanguly @anant_s @jbgt90 @Dash @Ryuzaki @AUSTERLITZ @bloo @SRP @Roybot @Robinhood Pandey @AMCA @GR!FF!N @CONNAN @Tshering22 @Ivan @Screambowl @pursuit of happiness @Chanakya's_Chant @Manindra @he-man @SrNair @IndoCarib @third eye @Zebra @itachiii @KayAay @NKVD @GURU DUTT @Omega007 @kurup @JanjaWeed @nair @OrionHunter @jarves

I always wanted this. What is opinion about this? Are you for or against it. Most black money is also used to buy gold after land!! Gold is a favourite hiding material for small time corrupt Govt. officials (class-II and above) as land requires huge amount.

Negative point is parents are going to suffer during their daughters wedding!!. Of course they will give away the cash, but decorating bride with real gold ornaments will be difficult!!

As if country is their father's property. Impose tax on gold sell. These group of jweller have become very health by black money. Also make purity certificate compulsory. Make any adulteration in gold a punishable crime.

 

[third eye]

I think its a good move.

Transparency is needed in all major financial transactions & why should jewelery be out of its ambit ?

 

[protest]

Black Money hoarder could just easily do multiple transactions of less than one lakh and get away with it. He could just buy gold coins at multiple different stores and ask a jeweler to make an ornament of chosen design discreetly.

 

[Blue_Eyes]

Chor ki dadhi me tinka!
These jewellers are the part of converting black money into white and gold, a good decision by govt.
So Next time when I go to purchase a necklace I have to show my PAN card

 

[pursuit of happiness]

ewellery association GJF today strongly opposed the Centre’s plan to make PAN card mandatory for any transaction over Rs 1 lakh, saying the move will hit their overall sales by up to 60 per cent and threatened to go on strike if the proposal is not rolled back.

As part of measures to curb black money, Finance Minister Arun Jaitley in his Budget speech said quoting of PAN is being made mandatory for any purchase or sale exceeding the value of Rs 1 lakh.

The All India Gems and Jewellery Trade Federation (GJF), which has about 6 lakh members, including 3 lakh jewellers, said the domestic gems and jewellery industry is worth about Rs 5 lakh crore. Of this, 80 per cent comes from the rural area where people largely do not have PAN.

“We strongly oppose this proposal. This will hit jewellers and 1 crore artisans employed in this industry badly. 60 per cent of the jewellery sales will be impacted if PAN card requirement on transactions over Rs 1 lakh crore is imposed,” GJF Chairman-Elect Manish Jain told reporters in Delhi.

Jain said the association has sought appointment with the Prime Minister and Finance Minister to share their grievances and hoped that the issue would be resolved.

Asked if government goes ahead with this proposal, Jain said: “Our members are agitated and they want to go on strike. We are pacifying them, but if the talks does not go on track, we will be forced to go on strike”.

He said the jewellers want to discuss this issue with the government and strike would be the “last option”.

GJF noted that TCS (tax collected at source) is already applicable on sales of bullion above Rs 2 lakh and jewellery above Rs 5 lakh and demanded that same regime should continue.

Stating that this proposal is impractical, Jain said “There are only about 14 crore Pan Card holders, which means that 89 per cent of the population does not have PAN cards. There are only 4 crore people who files Income Tax return.”

He argued that since there is no tax on farm income, about 70 per cent the population, who depends on agriculture do not have Pan cards.

Jain hailed the government’s various steps to curb black money including the gold monetisation scheme, but said this proposal of Pan card requirement will be counter-effective.

GJF Regional Chairman Vijay Khanna said this proposal will also discourage the NRIs, who don’t have PAN card, to purchase jewellery in India.

In Mumbai, GJF Director Ashok Minawala 70 per cent of rural sales and 50 per cent of urban sales would be affected with this decision. This will also encourage 80 per cent of industry to go back to the unorganised way of business format, he added.

@levina @45'22' @janon @scorpionx @Guynextdoor2 @SpArK @MilSpec @Rain Man @Skull and Bones @jamahir @Bornubus @wolfschanzze @Mike_Brando @Srinivas @TimeTraveller @halupridol @HariPrasad @gslv @Blue_Eyes @doppelganger @Bang Galore @kaku1 @Koovie @Ind4Ever @IND151 @SarthakGanguly @anant_s @jbgt90 @Dash @Ryuzaki @AUSTERLITZ @bloo @SRP @Roybot @Robinhood Pandey @AMCA @GR!FF!N @CONNAN @Tshering22 @Ivan @Screambowl @pursuit of happiness @Chanakya's_Chant @Manindra @he-man @SrNair @IndoCarib @third eye @Zebra @itachiii @KayAay @NKVD @GURU DUTT @Omega007 @kurup @JanjaWeed @nair @OrionHunter @jarves

I always wanted this. What is opinion about this? Are you for or against it. Most black money is also used to buy gold after land!! Gold is a favourite hiding material for small time corrupt Govt. officials (class-II and above) as land requires huge amount.

Negative point is parents are going to suffer during their daughters wedding!!. Of course they will give away the cash, but decorating bride with real gold ornaments will be difficult!!

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getting PAn and filing IT dont have any relvance..
Having PAN does not mean you will pay tax but if you pay tax it must that you ahd PAN..
if PAN comes those who do hukey -doorie will be in frying pan ..
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Dont give gold to daugter.. you alrady giving big dontaiton of KANYA DAN.. enough
rest keep in FD or investmet for her or their child future..
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gold is bad invesment