SRINAGAR: Jewelers in Kashmir valley are backing their counterparts in Indian over opposing a new rule where in New Delhi has made it mandatory for customers to quote Permanent Account Number (PAN) for gold and jewelry purchase above rupees two lakh.
New Delhi had recently introduced this norm, effective from January where quoting PAN details was made mandatory for gold purchases- a move opposed by gold and jewellery associations across India.
The Kashmir Gold Dealers and Workers Association(KGDWA) here said that it supports other gold and jewellery unions across India over this issue saying that the move if applied will drastically decline sales.
“We are still in talks with GoI officials over this new norm and like dealers across India and we too want the proposal scrapped,” said Bashir Ahmad Rather president KGDWA who is also the Secretary of New Delhi based Akhil Bhartiya Swarnkar Sangh New Delhi.
Rather said that majority of customers do not have this card saying that he feels that 15 percent of customers in Kashmir valley having this card.
Adding that their practical difficulties to make customers follow this norm and for those who do not PAN there is more tedious paper work that has a huge questionnaire that can easily drive away customers.
General Secretary of the association here Abdul Rashid Bhat told Kashmir Reader that this move is aimed at curbing and tracking black money, but feels that the there are loopholes in this norm.
“It amounts to discrimination to the customers mostly from rural areas who do not possess such cards and women who form most of our customer base,” he said.
Mushtaq Ahmad, a local customer, told Kashmir Reader that there are inherent problems in this new move and this could also lead to emergence of unorganised sector that could offer gold without following any such norms.
“There could be issues where a customer will always tend to shop less than this taxable amount from different traders to evade detection,” he said.
Meanwhile Rather said that they have apprised the GoI about the flaws in this new rule and have asked the requirement of PAN cards be made mandatory from customers only if they purchase gold above Rs 10 lakh.
He said that there are apprehensions that it could encourage the unorganised sector and the organised sector will die with government alter have no control over that.