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Jewellery sales across India under govt scrutiny following demonetisation

Jewellery sales across India under govt scrutiny following demonetisation

India TV Business Desk, New Delhi [ Updated: November 14, 2016 19:17 IST ]
Jewellery sales across India under govt scrutiny following demonetisation

Amid reports of jewellery sales being broken down into sub-Rs 2 lakh purchases to avoid quoting of PAN following the demonetisation of higher denomination notes, tax authorities are now keeping a close vigil on jewellers across India, a PTI report said.

After the government banned old 500 and 1000 rupee notes, gold and bullion are said to be favoured route for laundering of ill-gotten wealth.

Gold was sold as high as Rs 50,000 per ten grams last week against the market price of Rs 31,000 as gold and bullion was said to be used to convert the debunked currency.

"PAN is mandatory for jewellery sale of over Rs 2 lakh. We are keeping a watch on jewellers to see if they are breaking their sales into parts of less than Rs 2 lakh," CBDT chairman Sushil Chandra told reporters here.

Necessary action and penalty, he said, would be initiated wherever violations are found.

"Whether it is deposit of cash or sale of goods in old currency note, we are keeping a watch and taking steps," he said after inaugurating the CBDT pavilion at IITF.

The government is reportedly also looking at asking jewellers to deposit old high-value currency notes by a set date to prevent money laundering. Also, there are fears that jewellers could show backdated cash sales.

While jewellers and diamond traders usually show bills every week while depositing cash generated through sales, very high value deals in cash are often split in smaller amounts or stolen PAN number is cited on bills.

Industry insiders say the modus operandi is to use unaccounted gold stock against receipt of demonetised currencies at a heavily discounted rate.

Jewellers stayed open into the early hours soon after the Tuesday night announcement by Prime Minister Narendra Modi to withdraw old 500 and 1000 rupee notes in the nation's biggest crackdown on black money, corruption and counterfeit currency.

According to PTI, about 250-kg gold was reportedly sold in Mumbai within a few hours of the announcement.

Finance ministry has ordered all its revenue intelligence agencies to join the crackdown on jewellers and hawala operators besides tracking movement of demonetised currency notes.

 

(With PTI inputs)

 

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