Be alert while lending against gold, banks told

Mangalore Today News Network

Mangaluru, July 20,2017: Speaking at a workshop on GST organised for presidents and CEOs of all primary agriculture credit cooperative societies of Dakshina Kannada and Udupi districts, South Canara District Central Cooperative (SCDCC) Bank chairman M N Rajendra Kumar said. . Cooperative banks should be cautious while lending loan against pledged gold ornaments,


“The cooperative bank officials should have knowledge on how much loan could be given to an individual based on his/her capacity to repay the loans borrowed. With Padubelle incident (wherein fake jewellery was pledged and later the family of four committed suicide), the cooperative society has already felt inconvenience. The official who is guilt in the incident has been arrested as well. Hence, the cooperative societies should be cautious and alert while lending loan against gold ornaments.”

“The society officials should have enough knowledge on the person who pledges gold ornaments for availing loan and also the capacity of an individuals to possess the gold. The issue of problems faced by the cooperative societies engaged in Public Distribution System (PDS) has been brought to the notice of the authorities concerned,” Rajendra Kumar said.

Chartered accountant D R Venkatesh said Goods and Services Tax (GST) has paved way for what is popularly referred to as the concept of “One Nation, One Tax.” The GST, which was rolled out on July 1, has had an impact on business and firms. The public and traders will have a thorough knowledge on GST and its taxation rate in the next three to four months, noted.

He said all those individuals, who have more than Rs 20 lakh business turnover, have to register under GST mandatorily. However, this rule is not applicable to farmers who cultivate and sell the produce they grow. Those whose annual business turnover is less than Rs 20 lakh, but have business transactions outside the state should also register under GST. Advocates need not register under GST. “Many small scale traders and service providers would be saved from undertaking GST compliances,” he added.

It may be noted that the existing taxpayers (registered with VAT/ Excise/ Service Tax), those who have not received provisional IDs or not migrated to GST for any reason till now, need to apply for new registration under GST and obtain their GSTIN latest by July 22. However, in the case of taxpayers those who have been migrated to GSTN but actually not required to obtain GST registration, they can apply for cancellation of GST registration within 30 days. Directors Shashikumar Rai, Cooperative Union President Harish Acharya, SCDCC Bank CEO (in charge) Sathish S participated.