Coimbatore: SMEs are very badly affected and are reeling under a pressure of cash crunch, GST payments, GST Fine and Penalties.
Coimbatore: SMEs are very badly affected and are reeling under a pressure of cash crunch, GST payments, GST Fine and Penalties.
In order to help the Trade and Industrial sector to tide over the situation, the Indian Chamber of Commerce and Industry, Coimbatore Chapter has appealed to the PM and TN CM, to consider waiver of taxes, particularly Property Tax, for the second half year, up to Mar 31, 2020.
They suggested that the State Government may also waive the payment of profession tax and other statutory tax of local bodies. This they said, will certainly help the industries to sustain their business activities, without any break.
Thanking the PM and the CM, for taking serious steps to contain the spread and adverse fall out of COVID-19, they further addressed the decline of the Indian economy.
"As the economy continues to decelerate, it is witnessing a slow down. The entire sector - namely manufacturing, Bilateral Trade relations, construction, exports, Trading etc., have come to a stand-still. While India has so far dealt with the global health crisis in a proactive manner in a perfect coordination between different Union Ministries like Health and External Affairs along with State authorities, we in the industry have to join in this drive to ensure that no panic is created, in our financial markets which have a robust institutional strength", they said.
Addressing the problems faced by SMES, they said, "The industries particularly SMEs are very badly affected and are reeling under a pressure of cash crunch, GST payments, GST Fine and Penalties and now a sudden stop in their cash flows added to their existent struggle to pay their loans. All the large establishments have been asked to close down for 15 days up to 31% March 2020. The small industries which are selling their products as ancillaries, are unable to collect their outstandings and also to remit GST, for the present quarter."
The Micro, Small Industries, they said, need to be supported by Central and State Governments to maintain sustainability.
* Loan repayments and interests to be suspended for few months depending on the impact of Corona
* GST fine and penalties especially for 2017-2018 and beyond to be considered and revoked.
They further requested the State Government to recommend and the PM to consider, concession on various Taxes and CESS, and also advise the banks not to charge interest on loans for the industries for the last quarter, because they were already seriously affected due to non production, no sales, closure etc.
The letter further noted that all the segments were tiding through very difficult times. Since the Government has given strict instructions to all industrial establishments to comply with the latest advice, these will certainly help to eradicate Corona.
Disclaimer: This news is carried based on a press release from the organisation.