A Parliamentary Committee has called upon Finance Minister Arun Jaitley to keep tab on transaction made in cash, for sale or purchase of bullion and/or jewellery where the value of each transaction is below Rs 2 lakh.
“The committee would like to point out that mandatory quoting of PAN while entering into sale and purchase of goods and services, including bullion and/or jewellery, has a cap of Rs 2 lakh, that too for each transaction. That being so, the Committee feel that any person can enter into multiple transactions, intermittently, for purpose of bullion and/or jewellery where amount does not exceed Rs 2 lakh,” the Committee was quoted by PTI as saying in a report.
According to a PTI report: Last year, the government had decided to make quoting of PAN mandatory for transactions exceeding Rs 2 lakh per transaction.
“The committee, therefore call upon Ministry of Finance to work out a two-pronged strategy, i.e., one hand to empower the tax authorities to keep tab on transaction made in cash, for sale of purchase of bullion and/or jewellery where the value of each transaction is below Rs 2 lakh,” Committee was further quoted by PTI as saying .
The Parliamentary Committee also asked revenue department to undertake a study to find out the impact of excluding the requirement of mandatory quoting of PAN for the sale or purchase of bullion or jewellery-where the payment is made through cheque, credit card, draft or through online transfer.
The Committee said it has taken note of the initiative taken by the government to curb the menace of black money and also to expand the base enhance the tax-GDP ratio.