Tuesday, Jun 19 2018 | Time 02:34 Hrs(IST)
image
image
  • Trump orders creation of space-focused US military branch
  • FIFA World Cup: England beats Tunisia by 2-1
StatesPosted at: Dec 17 2016 11:58AM Share

Unburden chit fund industry with minimal GST : ICFA

Chennai, Dec 17 (UNI) Incorporated Chit Funds Association (ICFA), Tamil Nadu,
which was a member of the All India Association of Chit Funds (AIACF), New Delhi,
today appealed to the Centre to unburden the Chit Fund industry by levying minimal
GST and amending the legislation for hassle-free procedures with respect to
registration and functioning of the Chit Fund business.
"If the issue of the levy of tax is not addressed immediately it would not only
adversely impact the working of the Chit industry, but would also seriously curtail
the financial inclusion cause, which the industry has been addressing since
inception.
Also, enacting suitable laws that make setting up of Chit Fund companies and
running them a less cumbersome task will make the industry grow" AIACF General
Secretary T S Sivaramakrishnan told reporters here.
''The capacity of this Industry to cater to the lower and middle income households
is quite substantial and will be possible only with the legislative and administrative
support'', he added.
In the scenario of country's functioning of non-banking financial companies eased
without such a tax burden, Chit fund sector also anticipates such a favour from the
government," he said.
Mr Sivaramakrishnan said it should also be noted that in the event of any fraudulent
activities by unorganized finance companies, it was always misquoted as Chit funds
whose failure was a negligible one per cent in reality.
Since this damages the reputation of the industry among public, the ICFA urged the
state government to take required steps to curb such misrepresentations, he added.
On demonetisation, he said though the ICFA welcomed the move, it was not easy
for customers to switch over to cashless transactions and finally resulting in poor
collection of subscriptions thereby affecting the cash flow.
The industry also expects subsequent revolutionary changes that will benefit the
industry's sustainability and growth. ''We expect government's nod for the chit fund
industry to engage themselves in other businesses like selling of insurances and
helping in generation of funds to the industry through fee-based service, he said.
Chit Fund supporting the livelihood of lower and middle income household is
more of a Self-Help Group for them and not a service that could be subject to
any tax.
And with the conversion of Service tax to GST, it would add more to the owes
of the industry. GST up to a maximum of five per cent could only be a help to the
Chits for its survival and deliver good to its dependable customers.
Mr Sivaramakrishnan said the ICFA would be celebrating its golden jubilee
at Tirucharapalli tomorrow.
UNI GV CS 1157
More News
Aspiring Hajis beware of bogus tour operators

Aspiring Hajis beware of bogus tour operators

18 Jun 2018 | 11:50 PM

Hyderabad, Jun 18 (UNI) Haj & Umrah Tours Organizers' Association Hyderabad (AP&TS) has appealed aspiring Haj pilgrims to be cautious about booking their Haj visits with private tour operators.

 Sharesee more..

Two killed, 19 injured as bus overturns in Varanasi

18 Jun 2018 | 11:41 PM

Varanasi, Jun 18 (UNI) Two youngsters going for a police recruitment died, while 19 others were injured when a bus heading towards Varanasi from Allahabad overturned in Mirzamurad area early on Monday morning.

 Sharesee more..
Naveen is accountable on missing Ratna Bhandar keys and jewellery of Jagannath temple - BJP

Naveen is accountable on missing Ratna Bhandar keys and jewellery of Jagannath temple - BJP

18 Jun 2018 | 11:39 PM

Bhubaneswar, Jun 18 (UNI) Chief Minister Naveen Patnaik will be accountable to the people of Odisha on the missing keys of Ratna Bhandar of jagannath temple and also up keeping the jewellery of the lords, State BJP unit Spokesperson Pitambar Acharaya said.

 Sharesee more..

Nanjing University, China to sign IMoU with Purvanchal university

18 Jun 2018 | 11:39 PM

Jaunpur, Jun 18 (UNI) Nanjing University of Science and Technology will sign an international memorandum of understanding (IMoU) with Vir Bahadur Singh Purvanchal University which will pave way for international glorification of eastern Uttar Pradesh varsity.

 Sharesee more..

Mastermind of CDR case arrested, remanded to police custody till

18 Jun 2018 | 11:33 PM

Thane, Jun 18 (UNI) The city police has arrested one more accused
person for his alleged role in the infamous CDR case.

 Sharesee more..
image