However, it was re-imposed in the year 2007 - 08 & our Association along with AIACF is fighting for non imposition of Service Tax & as of now the matter is in the Supreme court. The Department has given an abatement of 30 % on service Tax after giving lot of representations.
When the RBI categorized our Chit Fund industry as NBFC & seeked for Amendment of the minimum capital to be as Rs 25 Lac (Now 2 Crores). Our Association along with AIACF fought & was successful in removing such condition by catagorising our Chit Industry as Residuary Miscellaneous Non Banking Finance Companies, from Miscellaneous Non Banking Finance Companies.
When the Chit fee for Prior Sanction was increased from Rs 100/- per group to 1% of Chit value in our state, our Association filed a Writ Petition in the High Court of Karnataka & obtained a great relief in reducing the the fee to obtain Prior Sanction for each group.
In our state few Unregistered Chit Companies (running Prize Chit Schemes and other Finance activities, but not actually Chit Activity as defined in Chit Fund Act) cheated the public by accepting huge deposits with high returns and not returning the same & the police department started harassing the Chisters & the Association along with chisters met the concerned police Officials & was successful in resolving the issue
The Income Tax Department – TDS section started survey of Chit Funds & issued notices to 10 - 12 Companies. The Association immediately swung to action met the department officials & was successful in stopping further survey. The Association took the matter to the Appellant Commissioner – TDS and fought the Appeals that TDS is not applicable & won the appeals which were a great relief to the Chit operators.
The following District Association was launched:-
- Tumkur District Chitsters Association
- Mangalore District Chitsters Association
- Belgaum District Chitsters Association
Our Association has hosted the executive Committee Meetings of All India Association of Chit Funds, New Delhi, about 6 occasions and the latest was on 4th March, 2011
