PPBM submits memo to National Traders’ Welfare Board chairman 

Ludhiana, February 29, 2024: Punjab Pradesh Beopar Mandal (PPBM) has submitted a memorandum to National Traders’ Welfare Board chairman Sunil Jeevrajji Singhi, giving suggestions to improve the conditions of business environment for 8 crore traders in the country. The memorandum was submitted to Singhi during a meeting of Chandigarh Beopar Mandal held in Chandigarh on Wednesday. 

Giving this information here on Thursday, Sunil Mehra, state General Secretary PPBM and All India Vice President Bhartiya Udhyog Vyapar Mandal and Ayush Aggarwal, General Secretary, PPBM and All India Secretary Bhartiya Udhyog Vyapar Mandal said they gave their suggestion regarding practical difficulty in implementation of Section 43b(h) of Income Tax Act. The memorandum mentioned that “We all know that the department of Income tax and finance department have given green signal to the provision where any payment due towards MSME beyond the prescribed time-limit (45 days) standing outstanding in books on 31 March every year, will be added back to the income and will attract the income tax liability on it. We would like to point out that, such provisions will rather provide setback to MSME in place of payment assurance. This is because the standard credit period in the business lines varies from business to business and may even extend up-to 180 days and such 180 days credit period is also accepted in GST Act 2017. Large companies are avoiding dealing with MSMEs due to payment constraint attracting heavy income tax.”

They said while suggesting they stated that “We would like to suggest that such provision u/s 43b(h) shall be held for uptil one year and if such provision is to be implemented then atleast the credit period shall be standardised for all the concerns whether MSME or non-MSME e.g. Bringing down the credit period from 180 days to 120 days and increasing 45 days to 120 days keeping the financial cycle at par and also leaving it at discretion of seller to use as tool to recover their money; as it was u/s43 attracting legal actions on delayed payments ,which will also help in maintaining the working capital intact.”

They also gave their suggestion on Increase in Anti-Dumping duty on Chinese products. The memorandum reads: “It is seen that many cheap Chinese products e.g., Chinese yarn, the heavy machines used in hosiery industries; are being dumped by China in our country at very less rate and our own home-grown industrial product face difficulty in competing with the cheap rates of the product being dumped by the Chinese industrialists. As a result, the domestic industry is facing survival issues. We urge you to kindly increase the anti-dumping duty on Chinese products(presently ranging from 5.48% to 20.1% CIF) which are being dumped in Indian market just to disrupt the domestic industry and create unemployment in domestic industry.”

Further, they said they also demanded that there is an urgent need to improve deteriorating condition of Punjab. He said the memorandum reads: “It is sad to point out that the state which was once treated as feeder of India, which contains many industries including cycle and cycle parts manufacturing, hosiery, electronics, iron and steel and maximum number of MSMEs as per latest record of the DPIIT, the condition of Punjab is deteriorating day by day. Daily we hear news of daylight looting, kidnapping, gangsters roaming freely without the fear of law. Such incidents have demotivated our industrialists and traders and have created a sense of fear and disappointment among labours. Such acts have made such an impact that today, Punjab has seen downfall in out-state customers. Ludhiana, once Manchester city of India is affected the most as it is known as industrial hub of the state. There is a huge havoc and instability in law and order in the industrial hub of the state. Several complaints have been lodged with the commissioner of Police, Ludhiana. Many times local body government and Chief Minister of Punjab has been contacted and such issues have been brought under their notice but no concrete steps have been taken by the authorities till now to curb the situation. We urge you to kindly setup a task force to control the deteriorating law and order situation of the state.”