Trader body request New TDS Provisions should be exempt for those registered in GST
BOMBAY METAL EXCHANGE LTD has written following letter to Shri J. B. Mohapatra, Chairman, Central Board of Direct Taxes North Block, Secretariat Building, New Delhi – 110 002
Sub : New Special TDS Provision – Section 206 AB
We introduce ourselves as one of the apex body of Non-ferrous Metal trade and Industry in India representing traders, medium and small-scale industries, manufacturing units.
We understand that from 1st July, 2021 there would be a major change in the TDS Provisions wherein a new section 206 AB as a special provision has been inserted, and it would be mandatory for any person deducting TDS for any payment to do the Compliance of Section 206 AB or else they would be considered as a defaulter assessee.
Sir the trade and industry presently are severely affected due to the covid situation and they are trying to revive their businesses. In such tough times making such unnecessary compliances mandatory would be irrational and definitely add more hardship and inconvenience to the trade.
Also in the new provision it has been mentioned that the tax shall be deducted at higher than the previously specified rates. This would unnecessarily block funds adding more to the turmoil of the trade and industry.
Already our Industry is burdened with TCS and now with this TDS it would be an additional burden. There would also be a need to upgrade the accounting softwares and requirement of accounting staff which will increase the cost and workload and would be contradictory to the Governments goal of bringing ease in doing business.
Our country is looking forward to move ahead with a single point tax system like GST but with introduction of such tax provisions it would not serve the purpose. Hence we earnestly request that the TDS under the new provision should be exempted especially for the GST registered entities as this will adhere to the Government’s Policy of “One Nation One Tax”.
Thanking you and looking forward to positive consideration of our above request. Yours sincerely
BOMBAY METAL EXCHANGE LTD
Rikab V. Mehta PRESIDENT 9821236816
- Smt. Nirmala Sitaraman ji (Hon’ble Finance Minister Government of India)
- Shri Anurag Thakur ji (Hon’ble Minister of State for Finance and Corporate Affairs Ministry of Finance, Government of India)
- Shri Ajay Bhushan Pandey ji (Revenue Secretary Department of Revenue)