Industry asks for minimal GST on Chit Funds

He also noted that in the event of any fraud by unorganised finance companies it is always misquoted as Chit funds whose failure is a negligible 1 per cent in reality.

Published: 17th December 2016 05:45 AM  |   Last Updated: 18th December 2016 04:15 PM   |  A+A-

GST

Truck drivers walk out of a Commercial Taxes Department check post after getting clearance to cross a checkpoint in Tamil Nadu (Photo | Reuters)

By Express News Service

NEW DELHI: The Incorporated Chit Funds Association (ICFA), Tamil Nadu, member of All India Association of Chit Funds (AIACF), New Delhi, on Friday made an appeal to the Central Government for unburdening 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 could not only adversely impact the working of the Chit industry but will also seriously curtail the financial inclusion cause. Also, enacting suitable laws that make setting up of Chit Fund companies and running them a less cumbersome task will make the industry grow” said T.S. Sivaramakrishnan, General Secretary, AIACF, New Delhi

“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. 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 favor from the government,” he added.

He also noted that in the event of any fraud by unorganised finance companies it is always misquoted as Chit funds whose failure is a negligible 1 per cent in reality. This damages the reputation of the industry among public. It is demanded that the state government take required steps to curb such misrepresentations, he remarked.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp