The Coimbatore District Small Industries’ Association
(CODISSIA) has appealed to the Union Government to
introduce Goods and Service Tax (GST) from April 1,
2010.
In a memorandum to the
Centre, CODISSIA president K. Ilango said the government had set a road map to introduce GST from 2010. This should be followed. “We request the government to publish in advance the modalities for implementing
GST.”
The government should merge the Central Excise, Service Tax and the Value Added Tax and introduce only the
GST. The Central and State Governments should work out modalities to share the revenue generated.
He also said that exemption under Service Tax for micro and small enterprises was Rs. 10 lakh now. With high inflation, this was inadequate. Hence, it should be increased to Rs. 25
lakh. Further, Service Tax was levied for membership subscription of the association. This should be withdrawn.
Mr. Ilango said Fringe Benefit Tax had led to an increase in the cost of operation for the small industries and added to the administrative work in these units.
All small and medium-scale enterprises and exporting units had to pay the tax as there was no exemption limit. Exporting small-scale units had to factor in the Fringe Benefit Tax and this affected their competitiveness.
The bank interest rates for small industries were higher though they were treated as priority sector. Small industries should be able to avail themselves of loans without security as announced by the government. Working capital loan should be sanctioned on the basis of the projected turnover. “Credit flow from banks and financial institutions should be timely, adequate and affordable,” he said.
Infrastructure facilities, including roads, power supply, water, transport and communication network, should be at international standards and readily available in industrial clusters, special economic zones and industrial estates.
Several road projects in this region had been delayed though the economy and industrial productivity here had grown.
