Date:10/12/2006 URL: http://www.thehindu.com/2006/12/10/stories/2006121003100800.htm

Andhra Pradesh

Chit funds against move to amend Act

Special Correspondent

HYDERABAD: The Andhra Pradesh Federation of Chit Funds demanded either implementation of the Central Chit Funds Act in the State or continuance of the Andhra Pradesh Chit Funds Act, 1971.

At a State-level conference here on Saturday, the participants discussed the proposed amendments to the AP Act and felt these would only force the registered chit operators to do unregistered business.

Other issues that figured in the conference were implementation of the Central Act here, tax deduction on source (TDS) on chit dividends and the State proposal to reduce foreman commission from five to two per cent.