2019
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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3%
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5%
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7%
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9%
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Detailed explanation-1: -Foreman’s commission: Under the Act, the ‘foreman’ is responsible for managing the chit fund. He is entitled to a maximum commission of 5% of the chit amount.
Detailed explanation-2: -(1) No person shall carry on chit business unless he uses as part of his name any of the words “chit”, “chit fund”, “chitty”, “kuri”, “fraternity fund” or “Rotating Savings and Credit Institution” and no person other than a person carrying on chit business shall use as part of his name any such word.
Detailed explanation-3: -The applicable HSN code for chit funds is Heading 9971: Financial and related services. Per the latest recommendation by the 47th GST Council meeting, the GST rate on chit fund commission has been raised from 12% to 18%.
Detailed explanation-4: -Chit Funds Run by State Governments: These funds are managed and regulated by state governments. Funds run by PSUs (public sector undertakings) also belong to this class.