G.O. Ms. No. 176, Amendment to the Tamil Nadu Chit Funds Rules, 2017
The Commercial Taxes and Registration Department issued G.O. Ms. No. 176 dated 29 November 2017, replacing Appendix II of the Tamil Nadu Chit Funds Rules, 1984 with a revised table of fees, effective from 13 December 2017. The Head of the Registration Department later issued Circular No. 48534/ஐ4/2016 dated 27 December 2017, directing registration officials and chit authorities to apply the revised fees and recover any shortfall collected under the old rates from 13 December 2017.
What the amendment governs
G.O. Ms. No. 176 issued by the Commercial Taxes and Registration Department revises fees for official work under the Chit Funds Act, 1982. It replaces Appendix II of the Tamil Nadu Chit Funds Rules, 1984 and covers applications, registration, document filing, audits and other approvals connected with chits.
The revised fees took effect on 13 December 2017, the date of publication in the Tamil Nadu Government Gazette.
Who is affected
The revised table applies mainly to chit foremen, chit businesses, subscribers making specified applications, and people dealing with the Registrar, Deputy Registrar of Chits or Chit Auditor. It also affects a person offering immovable property as security for a chit.
Circular No. 48534/ஐ4/2016 issued by the Head of the Registration Department instructs Sub-Registrars acting as Assistant Chit Registrars, District Registrars acting as Deputy Chit Registrars, and chit arbitrators to follow the revised rates. Deputy Heads of the Registration Department were directed to inspect compliance.
Key fees and changes
The replacement fee table includes:
- Previous sanction to commence or conduct a chit, charged according to duration, tickets or instalments, and applicable minimum amounts.
- Filing and registration of a chit agreement, with rates based on the chit amount. The listed charges range from Rs. 30 to Rs. 350 per ticket or instalment, subject to minimum fees ranging from Rs. 500 to Rs. 4,000.
- Registration of an alteration, addition to or cancellation of a chit agreement, Rs. 400.
- Filing a declaration and obtaining a commencement certificate, Rs. 60.
- Filing the specified certificate or a copy of meeting minutes, Rs. 50 each.
- Audit of balance sheets and chit accounts, with fees varying according to the aggregate chit amount or chit amount.
- An additional Rs. 100, plus the Chit Auditor's applicable travelling and daily allowances, when an audit occurs at the foreman's premises or outside the Registrar's office.
Immovable property offered as security
The revised table charges Rs. 400 for an application involving security property outside the Registrar's jurisdiction but within Tamil Nadu, and Rs. 1,000 where the property is outside the State. Inspection by the Deputy Registrar of Chits to value property offered as security costs Rs. 1,000. An application to substitute security while the chit continues also costs Rs. 1,000.
Recovery of fee differences
Circular No. 48534/ஐ4/2016 directs officials to identify fees collected at old rates on or after 13 December 2017 and promptly recover the difference from the relevant persons using the revised rates.
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Common questions
When did the revised chit fund fees take effect?
The source states that the revised fees took effect on 13 December 2017.
Can officials recover an additional amount if I paid the old fee after the amendment took effect?
Yes. Circular No. 48534/ஐ4/2016 directs officials to recover the difference where an old fee was collected on or after 13 December 2017.
Does the amendment charge a fee when immovable property is offered as chit security?
Yes. The fee depends on where the property is situated, and a separate Rs. 1,000 fee applies for inspection and valuation by the Deputy Registrar of Chits.
What is the fee for changing or cancelling a registered chit agreement?
An application to register an alteration, addition to or cancellation of a chit agreement carries a fee of Rs. 400.
