The Tiruppur Exporter’s Association (TEA) has requested Prime Minister Narendra Modi to initiate steps so that its member units are not harassed by the income tax department for not paying the advance tax for the current quarter due to a continuous decline in business. The authorities are attaching the tax amount in the units’ bank accounts, it wrote.
The tax department’s action without considering the unprecedented crisis in the knitwear export sector due to non-receipt of rebate on state levies (ROSL) and duty drawback and the delay in receiving goods and services tax (GST) refund is shocking, the association’s letter to the prime minister said.The Tiruppur Exporter's Association (TEA) has requested Prime Minister Narendra Modi to initiate steps so that its member units are not harassed by the income tax department for not paying the advance tax for the current quarter due to a continuous decline in business. The authorities are attaching the tax amount in the units' bank accounts, it wrote.#
The total receivable is to the tune of Rs 1,200 crore and that has led to a working capital crunch, it said.
Garment exports in October, November, December 2017, and in January and February this year declined by 40.75 per cent, 13.67 per cent, 13.03 per cent, 14.36 per cent and 13.86 per cent respectively compared to corresponding months of the previous year and TEA expects that a similar trend would continue this month as well.
The association urged the prime minister to immediately advise the revenue department not to attach the bank account of the exporters who fail to pay the advance tax. (DS)
ALCHEMPro News Desk – India
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