Tuesday, November 12, 2013

KINDLY SAFEGUARD THE READY-MADE GARMENT SECTOR BY EXEMPTING FROM E-SUGAM

DATED..31.10.13 TO THE HON'BLE CHIEF MINISTER , VIDHAN SOUDHA, BANGALORE KARNATAKA SUB.. A HUMBLE REQUEST FOR EXEMPTING READY-MADE GARMENT FROM E-SUGAM RESPECTED SIR, Season's greetings from the members of Karnataka Hosiery and Garments Association..Under your dynamic leadership Karnataka is progressing further & further..Let our trading community too prosper further and further, hence we submit this request ...E-SUGAM EARLIER WAS POSTPONED ON READY MADE GARMENTS (RMG) ON OUR REQUEST.. SITUATION HAS NOT CHANGED MUCH SINCE THEN... Sir..we met the finance secretary and the commissioner , commercial taxes to have the discussion on this crucial issue..we discussed with our managing committee and submit again with some new feed back .. WE SEEK EXEMPTION ON THESE GROUNDS ; RMG TO BE EXEMPTED FROM E-SUGAM AS ONLY YET LIMITED ITEMS ONLY ARE ELIGIBLE FOR E-SUGAM AND RMG BEING A BASIC NECESSITY OF A COMMON MAN NEEDS TO BE SPARED.. GOVT AND DEPT OF TAXES SHOULD ENCOURAGE THE FREE & FAIR TRADE PRACTICE & BUSINESS WITHOUT MUCH INTERVENTION FROM THE DEPARTMENTS. WE THINK OF NO NECESSITY OF E-SUGAM ONCE THE GOODS IS COVERED WITH TAX INVOICE & MONTHLY RETURNS ARE BEING FILED...WITH E-SUGAM , IT WILL BE ALMOST DAY TO DAY E-SUGAM SHOULD BE APPLICABLE ON ALL COMMODITIES WITH INVOICE VALUE EXCEEDING RUPEES 50000.. MOBILE COVERAGE NOT AT ALL SATISFACTORY IN CENTRAL BUSINESS DISTRICT AND ONLY 10-15% TRADERS ARE HAVING COMPUTERS IN THEIR ESTABLISHMENTS.. RMG INDUSTRY NEEDS TO BE SAFEGUARDED AS AFTER AGRICULTURE , IT IS THE ONLY INDUSTRY WHICH PROVIDES MAXIMUM EMPLOYMENT SPECIALLY TO THE WOMEN SECTOR CONSIDERING THESE SUBMISSIONS , WE REQUEST YOU KINDLY TO RELOOK INTO IT.. 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..Garment trade & industry is obliged with this kind gesture.. Awaiting for your kind response SIR.... WITH KINDEST REGARDS Thanking You, Yours Faithfully Sajjan Raj Mehta CHAIRMAN.TAXATION COMMITTEE ... KHAGA
Posted by at

18 comments:

  1. UnknownNovember 25, 2013 at 6:10 AM

    Sir,

    Such a pressure on the Industry (most of which is yet to be computer efficient) is not fine. It is suggested and prayed to the Hon'ble Commissioner of Commercial Taxes that this implementation may be postponed atleast for 6 months. The entire Trade is expected to be affected if such pressures of generation of e-sugam for every transaction are built in the middle of a year. The Department has not looked into the stock lying with the Transporters while implementation of E-Sugam for readymade garments.

    Thanks and regards,

    Suresh

    ReplyDelete
    Replies
    1. sajjanrajmehtaNovember 26, 2013 at 8:39 AM

      THANKS A LOT..WITH COMBINED EFFORTS , WE CAN SAFEGUARD THE TRADE & TRADERS...

      Delete
  2. AnonymousNovember 25, 2013 at 6:17 AM

    Dear Sir,

    Such a step in the middle of the year was totally unexpected. Respected Sir, we sincerely request for your intervention on this matter and help the Trade for which E-Sugam implementation in the middle of the year is also impossible. The Tax Department has been unaware of the fact that the business of Readymade Garments and Hosiery is a seasonal business and hence, E-Sugam cannot be implemented in the middle of a Season.

    ReplyDelete
    Replies
    1. sajjanrajmehtaNovember 26, 2013 at 8:39 AM

      THANKS A LOT..WITH COMBINED EFFORTS , WE CAN SAFEGUARD THE TRADE & TRADERS...

      Delete
  3. NiranjanNovember 25, 2013 at 6:31 AM

    Dear Sir,

    Some relaxation has to be given to the industry at large on certain compliances - may be based on the turnover of the trader, goods involved in the movement, no of transactions in a quarter etc.

    The implementation of schemes at the beginning of any tax year would be preferred instead of mid-term implementation.

    ReplyDelete
    Replies
    1. sajjanrajmehtaNovember 26, 2013 at 8:38 AM

      THANKS A LOT..WITH COMBINED EFFORTS , WE CAN SAFEGUARD THE TRADE & TRADERS...

      Delete
  4. UnknownNovember 25, 2013 at 6:32 AM

    Introduction of E-sugam on RMG will affect a lot of small traders who are making their living with the help of this business. Introduction of E-sugam will be like taking away the part of living which a small trader is making to pay to the consultant or to buy a computer and have internet connection just to issue E-sugam. A cost of thirty thousand plus for a computer and a minimum cost of Rs.250/- per month for internet connection will affect a small dealer very dearly. Also considering the fact that the dealer are less educated about the computer, the department should provide them a little more time to get accommodated to the new system and procedure.
    Yeshwanth

    ReplyDelete
    Replies
    1. sajjanrajmehtaNovember 26, 2013 at 8:38 AM

      THANKS A LOT..WITH COMBINED EFFORTS , WE CAN SAFEGUARD THE TRADE & TRADERS...

      Delete
  5. UnknownNovember 25, 2013 at 6:38 AM

    This is create undue hardship to the dealers and might result in dealers resorting to unfair means to carryon the transactions to avoid the hardship. Therefore i request you in the interest of trade and also in the interest of revenue to postpone or remove the requirement of E-sugam on RMG.

    ReplyDelete
    Replies
    1. sajjanrajmehtaNovember 26, 2013 at 8:37 AM

      THANKS A LOT..WITH COMBINED EFFORTS , WE CAN SAFEGUARD THE TRADE & TRADERS...

      Delete
  6. SomashekarNovember 26, 2013 at 12:32 AM

    Dear Sir,

    The industry which is already suffering from policy paralysis of central government is expected to be adversely impacted by this move of Commercial Tax department.Measures such as this will only result in fraudulent practices being resorted by the Trade and Industries.

    The Department should duly consider the practicalities of how industry works before implementing such measures, that too in the middle of the year.

    It would be best in the interest of industry if this measure is postponed to beginning of next Financial year.

    ReplyDelete
    Replies
    1. sajjanrajmehtaNovember 26, 2013 at 8:37 AM

      THANKS A LOT..WITH COMBINED EFFORTS , WE CAN SAFEGUARD THE TRADE & TRADERS...

      Delete
  7. UnknownNovember 26, 2013 at 12:46 AM

    Dear Sir,

    We request you to postpone the introduction of e-sugam on RMG to next Financial year. It will be big blow to thousands of small RMG dealers.

    ReplyDelete
    Replies
    1. sajjanrajmehtaNovember 26, 2013 at 8:37 AM

      THANKS A LOT..WITH COMBINED EFFORTS , WE CAN SAFEGUARD THE TRADE & TRADERS...

      Delete
  8. Suri JainNovember 26, 2013 at 3:34 AM

    Please postpone ESugam Implementation at any cost. This will be a disaster if it does not get postponed.

    ReplyDelete
    Replies
    1. sajjanrajmehtaNovember 26, 2013 at 8:36 AM

      THANKS A LOT..WITH COMBINED EFFORTS , WE CAN SAFEGUARD THE TRADE & TRADERS...

      Delete
  9. sajjanrajmehtaNovember 26, 2013 at 4:54 AM

    Ref. No.: 1424/1/29 25th November, 2013

    Shri Siddaramaiah,
    Hon'ble Chief Minister & Finance Minister,
    Government of Karnataka,
    Bangalore

    Dear Shri Siddaramaiah Ji,

    CAIT would like to bring in your attention about the practical difficulties faced by traders ever since introduction trader unfriendly ‘e-sugam’. We believe the policy was devised with all good intentions and encourage transparent and fair trade in state. However in reality it is proving counter productive as this will encourage traders to exploit system and prefer to do business without keeping proper records. This will also promote nexus between inspectors, other enforcement officials and traders. Instead of revenue coming to government exchequer, the money will go in the pocket of few officials. Such a situation will be detrimental to economy and development of state.

    The conditions of e-sugam are very impractical due to following reasons:-

    1. It directs to register the trader to his consignment invoice and receives a number for any transaction where the value of the goods is equal to or more than Rs 20,000.
    2. First problem is that most of the traders are single handedly handling their trading activities, hence as per the notification, he/she needs to spend considerable time in registering and generating consignment number from the e-sugam web portal or through mobile.
    3. Our main submission is that around 90% of traders are still not computer literate. Hence what is the use of imposing a rule where the user is not up to the mark.
    4. Even those traders who are computer literate may not have necessarily a computer with internet facility in their work premises.
    5. Generating e-sugam number may also not be always feasible as this too will consume time and in hinterland and countryside the user may fequenty face the network coverage issue.
    6. In very short, the submission is that this notification if implemented will create a headache for honest trader who will have to focus more on compliance process and requirements rather than his trading activity. Thus it will be adversely affect trading environment in state.

    Another biggest challenge which state must look into is the clear violation by those traders who knows to exploit the situation. There will be many unscrupulous individuals who will use the existing rules of e-sugam for their business benefit without paying any taxes at all. Example there is provision of cancellation of e-sugam citing various reasons. As per the current notification, the number obtained needs to be produced at the department’s checkpost or shown to officials randomly inspecting vehicles transporting goods. The unscrupulous traders after ensuring that the consignment reached the destination cancel the transaction filed under e-Sugam. Thus this mechanism fails to deter the dishonest traders have been using the duration of delivery of goods for evasion purposes. Sources in the Commercial Tax Department said a dealer can cancel the consignment invoice without drawing the attention of the department as its validity is for 48 hours.

    In such scenario I would like you to kindly have a re-look at the fair objectives and deliverables of the e-sugam so that it encourages honest traders, increases state revenue while curbing the menace of tax evasion and corrupt nexus of tax officials. On behalf of traders from different business, we would seek a an appointment for a delegation of traders so that you can be apprised of practical difficulties faced by honest traders and manufacturers.

    Thanking you. With regards
    Yours truly


    Praveen Khandelwal
    National Secretary General
    Contact Cell : +91-9891015165, 9310199771

    ReplyDelete
  10. sajjanrajmehtaNovember 26, 2013 at 4:55 AM


    To
    The Commissioner
    Commercial Tax Department
    Karnataka Government
    Bangalore
    Date:-
    Reference- E-Sugam on Readymade Goods
    Dear Sir,
    We are highly grateful for your gestures towards the trade bodies. We would want to give a feedback report regarding E-Sugam and its shortcomings on Readymade Goods, so that there are no interruptions during the implementation of E-Sugam across the sector.
    The basic purpose with which E-Sugam is being implemented is,’ Fast Clearance from Check post’. In cases where the suppliers are supplying goods within the same revenue region, there is no possibility of coming across any check post. Hence the basic purpose of E-Sugam gets defeated. Thus we would like to suggest that E-Sugam should not be made compulsory for local areas as it will also help in furnishing the local business and thus leading to growth of local business.
    At today’s rate of inflation if we step out for shopping with a budget of Rs.20, 000, not more than two dresses can be bought. Thus we would like to suggest that the bar for implementing E-Sugam should be raised to Rs75, 000 considering the current rate of inflation.
    Also the implementation of C-Form purchase from an amount of Re.1 should be reconsidered as no supplier will be interested in supplying goods to a region where he has to undergo many formalities to conduct a sale and close it with the target customer. Thus we would like to suggest raising the amount from Re.1 to a more optimal amount like Rs.20, 000.
    Also the fixing of number of days based on the distance that the transport vehicle has to travel should be reconsidered as there are many obstacles that prevent the fulfillment of the criteria. The transport vehicle does not leave till it is completely loaded with goods. This may take time and thus delaying the delivery of the goods from the prescribed date. Also the load is not collected from a single spot. They are collected from different spots or regions that may lead to variation in the distance. Also while crossing different regions they may encounter problems like landslides, curfews, road blocks etc. further delaying the delivery of goods. Thus we would request you to please relax the conditions with regard to the distance and delivery duration.

    Hope you would take these matters into consideration with the required attention and immediate action will be taken accordingly.
    Thanking You.
    Yours’ Sincerely

    Manoj Kumar Garg
    President
    KHAGA

    ReplyDelete

Subscribe to: Post Comments (Atom)