REQUEST TO POSTPONE THE IMPLEMENTATION OF E SUGAM TILL GST

TO,
THE HON'BLE CHIEF MINISTER,

GOV'T OF KARNATAKA,

VIDHAN SABHA,

BANGALORE

SUB..REQUEST TO POSTPONE THE IMPLEMENTATION OF E SUGAM
TILL GST

RESPECTED SIR,

Wish you a very Happy New Year IN ADVANCE from the members of Karnataka
Hosiery and Garments Association. Under your dynamic leadership, let our state
prosper further and further. We would like to get to your kind notice that E SUGAM
IS BEING MADE COMPULSORY FOR ALL TRADERS w.e.f 01/12/2011 which
will effect trade and businessmen in a significant manner.

Vat implementation in our state is quite smooth and traders have come to terms
with it. We traders are sincerely contributing to the exchequer as it is
our duty to work hand in hand with the Government..Everybody works
for the Government either in the pay roll or the tax roll..Esugam is being
implemented in view of cross-checking the transaction but what we have to
state is that already computerised check posts, monthly returns, vigilence
departments, intelligence departments are well equipped to handle genuinity
of transactions. In the readymade garment trade, it is an un-organised sector,
hence majority of traders are not having computers, internet connection
and skilled manpower and frequent power cuts will also cause a great
inconvenience.These days labour shortage is huge and traders financially are
not sound to maintain extra staff or they have to pay the auditor extra sums
monthly. which will be an extra financial burden. Reamdymade garment sector
this year is already facing huge crisis due to Excise and heavy increase in raw
material prices and due to which our margin have taken a huge beating and it
is getting difficult to make ends meet.

Any system should be easygoing. In many departments viz. incometax or excise , they
are liberising rules and return submission are paperless and easy..Our govt. should

also make things simpler, easiear and rules should be trader friendly...The Govt
should answer why it is being introduced, what are the merits/de-merits, what are the
benefits for the business community etc. Simply introducing one rule or other does not
make sense..The govt is voted by the people and all new rules should have the support
and favour of the public..Many states having vat regime have avoided ESUGAM
YET but our state is forcing traders to adopt it..Any universal law will be welcomed
with less hardship to the traders & we traders need your support.

Referring to the notification relating to information to be provided by the
consignee on the goods received from out of the State, it is impossible for
the consignee to get all the information in time and accurately from the
consignor before the dispatch of goods. The consignor who stays in some
other State may not take serious interest in providing all the information in
time, accurately and completely. Under the notification, it is the consignee
who will be held responsible for wrong or inaccurate information and is liable
to be penalised...

SIR..THE SMALL & MEDIUM TRADER IS COMING TO REALIZE THAT
EDUCATION IS TO BUSINESS WHAT FERTILIZER IS TO FARMING BUT
SUDDENLY IN SHORT TIME WE ARE UNABLE TO SWITCH OVER..

We request your goodself to kindly take note of the above points & oblige us by
safeguarding us from this ESUGAM..We assure you of our best services..Gratitude to
the Government should be as regular as our heart beat and we are thankful to you Sir
for the continuous patronage extended to us..

Thanking You,

Yours Faithfully

Sajjan Raj Mehta
CHAIRMAN.TAXATION COMMITTEE

KARNATAKA HOSIERY & GARMENT ASSOCIATION

9845501150