Private trust
This query is : Resolved
03 April 2009
Respected experts..
Ours is a private trust(non deposit taking) engaged in microfinance activity at chennai.At present we are lending to individuals under lower income group to improve their business, house and personal purpose.We planned to buy gold and sell it to the clients through loan schemes.Is there any legal formalities to be followed to execute this loan?Is there any limit to fix the interest rate for gold purhcase loans?
Ours is a private trust(non deposit taking) engaged in microfinance activity at chennai.At present we are lending to individuals under lower income group to improve their business, house and personal purpose.We planned to buy gold and sell it to the clients through loan schemes.Is there any legal formalities to be followed to execute this loan?Is there any limit to fix the interest rate for gold purhcase loans?
03 April 2009
You have to check whether the trust deed permits to do gold business. If trust deed do not permit you have to first ammend the trust deed.
Then you have to get sales tax registration.
After checking these two, then you can do the above transaction.
Interest rate should not be abnormal. It may be approximately PLR + 6% Maximum.
The maxium amount has to be decided through trust deed or in general it should not exceed more than 10% of the net worth of the trust.
Then you have to get sales tax registration.
After checking these two, then you can do the above transaction.
Interest rate should not be abnormal. It may be approximately PLR + 6% Maximum.
The maxium amount has to be decided through trust deed or in general it should not exceed more than 10% of the net worth of the trust.
03 April 2009
sir..Thanks. As u said, we have to amend our trust deed and our maximum loan size is 50000 INR.we are lending for the past 1 year and got sales tax registeration already.Is it necessary to get sales tax registeration again?Like other products, gold is also one of the loan product and it is secured as the client will get the gold at the end of loan.
03 April 2009
Not required. But you should check whether as per the sales tax certificate you should check whether you can deal in gold. If not you should ammend the sales tax certificate under the category inclusion of new product. The old licence itself is valid.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST Regis.
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Should I include march foreign salary received in April in my income for FY 2023-24?
- Sale of property furniture sale
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- Applicability of Ind As to associate of associate
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Refund of AY 22-23
- Disallowance of Section 43B(h) to sez units
- HSN Details in IFF/GSTR-1 & in GSTR 9
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
