Industry not too happy with mandatory PAN directive

The Central government’s recent directive of mandatory quoting of permanent account number (PAN) for transactions above Rs.2 lakh has not been well accepted by the Indian gem and jewlelery industry, reports say. The industry has protested to this. The directive of the government will be effective in January 2016 and is aimed at curbing black money, keeping a check on the black money and increasing the tax base, as per reports.

The jewellery industry feels this directive would create a negative impact on its sales, especially for the high-end jewellery items. The current limit for the requirement of PAN in a jewlelery transaction is Rs.5,00,000. According to reports the industry opines many consumers would not want show their PAN for such transaction values; also most of the consumers in the rural areas which are a big chunk of the gold jewellery consumer section do not own PAN.

It may be recalled the government had issued a directive previously for PAN requirement during transactions of over Rs 1,00,000 to which the gems and jewellery industry objected and was not kept part of it. The government had increased the limit to Rs 2,00,000 for bullion and Rs 5,00,000 for jewellery purchase, as per reports. But the latest directive is a worry for the industry that sales would be drastically impacted especially for the high-end jewellery segment.