The government on Friday has reversed an earlier notification issued on August 23 much to the relief of potential jewellery buyers and bullion dealers and jewelers. The new rule does away with the need to furnish PAN at the time of buying jewellery costing over Rs. 50000.
"The withdrawal of Rs 50,000 limit for KYC (know your customer) under PMLA is great news, as the imposition had impacted sentiment and sales to some extent," said Sandeep Kulhalli, senior V-P, retail and marketing, Tanishq.
The relaxation on the front is expected to boost sales of gold jewellery in the ongoing festive season. Earlier a leading business daily reported that gold jewellery sales has declined by half during the Navratra and Dusshera festivities owing to increased scrutiny by the Income Tax department and the KYC norms.
The Prevention of Money Laundering Act, (PMLA) 2002 has brought in its ambit businesses dealing in precious stones, metals and other high-value items with annual turnover of over Rs. 2 crore. This has necessitated them to furnish information on transactions above certain specified limits being reporting entities under the PMLA.
Now on jewellers will also not be liable to provide information about jewellery purchases over Rs. 50000 to concerned authorities.