COTMA submits request to Minister of Finance for tax reforms to revive small businesses
Coimbatore:With more than 40,000 factories operating in the districts of Coimbatore and Tirupur, COTMA Association has over 5,000 entrepreneurs and members. A large number of entrepreneurs in the Association have made the following requests to the Government:
- On the basis of the labor tax levied by the Central Government, the tax for entrepreneurs engaged in job work should be reduced from 12 percent to 5 percent.
- The amount of interest and penalty currently levied is too high for entrepreneurs who pay tax late and hence it should be removed.
- If the seller who sells an item does not file their account by the 11th of every month, which is currently enforced by the Council, the customer who purchased the item will have to withdraw the tax he/she paid as input tax (6).
- From the time GST was introduced, till last February 2021, no returns were filed across India. 8,20,481 accounts have been disabled and in addition, 7,34,405 people surrendered their accounts due to the recession and pressure from the business tax department. As a result, about 16 lakh factories across the country have been closed.
- When a small business entrepreneur receives payment delayed by 90 to 160 days to receive the payment from his clients, entrepreneurs have to pay tax on those bills by the 20th of every month.
- Though there is delay in payment, entrepreneurs have to pay the corresponding tax and have to borrow from the lender and private financial institutions. Entrepreneurs' investment in their business is greatly reduced as they have to pay installments and interest every month on such loans. Entrepreneurs should be allowed to do their business by paying only their outstanding amount without any interest or penalty. This will increase the country's tax revenue and increase GDP, plus at least 32 lakh jobs will be created.
- The tax rate on raw materials is higher when certain goods are manufactured and the GST tax rate is lower when selling manufactured goods. This is also a major crisis for entrepreneurs.
- The entrepreneurs who fail to file returns are allowed to do business only after three months which is causing a great deal of crisis for entrepreneurs.
The Association has requested the Minister of Finance of Tamil Nadu to table these issues to the notice of the Central Government and revive the small businesses.
- On the basis of the labor tax levied by the Central Government, the tax for entrepreneurs engaged in job work should be reduced from 12 percent to 5 percent.
- The amount of interest and penalty currently levied is too high for entrepreneurs who pay tax late and hence it should be removed.
- If the seller who sells an item does not file their account by the 11th of every month, which is currently enforced by the Council, the customer who purchased the item will have to withdraw the tax he/she paid as input tax (6).
- From the time GST was introduced, till last February 2021, no returns were filed across India. 8,20,481 accounts have been disabled and in addition, 7,34,405 people surrendered their accounts due to the recession and pressure from the business tax department. As a result, about 16 lakh factories across the country have been closed.
- When a small business entrepreneur receives payment delayed by 90 to 160 days to receive the payment from his clients, entrepreneurs have to pay tax on those bills by the 20th of every month.
- Though there is delay in payment, entrepreneurs have to pay the corresponding tax and have to borrow from the lender and private financial institutions. Entrepreneurs' investment in their business is greatly reduced as they have to pay installments and interest every month on such loans. Entrepreneurs should be allowed to do their business by paying only their outstanding amount without any interest or penalty. This will increase the country's tax revenue and increase GDP, plus at least 32 lakh jobs will be created.
- The tax rate on raw materials is higher when certain goods are manufactured and the GST tax rate is lower when selling manufactured goods. This is also a major crisis for entrepreneurs.
- The entrepreneurs who fail to file returns are allowed to do business only after three months which is causing a great deal of crisis for entrepreneurs.
The Association has requested the Minister of Finance of Tamil Nadu to table these issues to the notice of the Central Government and revive the small businesses.