KCCI seeks FM’s intervention to help trade and industry

 KCCI seeks FM’s intervention to help trade and industry
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Mangaluru, May 01, 2021: The Kanara Chamber of Commerce and Industry (KCCI) has sought financial, banking and support services to trade and industry to face challenges of COVID second wave lockdown.

“We request the Government to expedite the refunds of Income Tax, GST, Duty Drawback. We request the Government to issue MIES scripts 2020-21 immediately,” KCCI president Isaac Vas stated in a letter written to the finance minister.

The KCCI sought special package for industries relating to tourism, hospitability and travel industry and also Interest and Penalty waiver on payment of Power Dues delayed payments to ESCOMs for MSMEs and Domestic Users.
The KCCI has requested interest waiver for MSMEs for the loans obtained covering the lockdown period.

“Funding should be given under Emergency Credit Line Guarantee Scheme under the AtmaNirbhar package to MSMEs. The Interest Subvention scheme should be further extended till 31st March 2022.There should be relaxion of norms for declaration of a loan account as NPA including 6 month repayment holiday from April 2021.There should be relaxation of Penal Fees for non-submission of stock statements, financial statements in connection with Bank borrowings for the Lockdown Period and following three months,” Vas added in the letter.

He also asked the Union Finance Minister Nirmala Sitaraman to publish a White Paper to help the Business and Commercial World as well as general public.

“There are severe short and long term adverse impacts which are going to hit our economy and nation’s tax revenues in a major manner including causing severe hardships to the workers, employees, entrepreneurs and general public. Just as we have to address the health and survival challenges of the Common Man, we also need to urgently address the very survival and health functioning of Trade and Industry especially in the MSME Sector who are faced with the challenge of stoppage of daily operations as well as meeting fixed commitments like salaries and wages, rents, Power Dues, Tax dues and Bank Loan servicing commitments,” he said.

‘We request you to publish a White Paper to help the Business and Commercial World as well as general public to understand, prepare for and cope with the challenge for the short and long term period,” he added.
KCCI has request the finance minister to cover the matters like

  1. Short and Long term steps taken following the first Lockdown of April 2020.
  2. Present and future forecasts of the COVID numbers for the next 12 months and beyond areawise.
  3. Present preparedness and forecasts on availability of healthcare including Hospitals, Beds, Oxygen availability, ICU availability, vaccine availability.
  4. Strategy on Vaccination Production, Distribution and coverage of general public.
  5. Outlay and manner of spending of Budget outlays earmarked for COVID Challenge in Central Budget 2021 and through the PM Cares Fund.

As an urgent and immediate action from the Government, the KCCI has requested the Minister to take urgent measures to address the following challenges to help the businessworld to cope with the situation and ensure minimum damage to the health of the Economy and general well being of the Common Man.

Compliance Matters:

S NoLawRelaxation sought
1Income Tax, GST, EPF, ESI, Company Law, LLP lawAll compliance dates falling between 1st April 2021 to 31st July 2021 should be extended till 31st August 2021 without any additional interest, Late fees and penalties.
 2Relaxation of Input Tax Credit based on GSTR 2A/2BThere should be relaxation of Input Tax Credit based on GSTR 2A/2B for a period of 6 months till September 30th.
3Company LawThe Government should provide similar relaxation in Company Law as the same was done for Financial year 2020-21
4Insolvency LawThe provision for file for bankruptcy should be on hold similar to the relaxation done for 2020-21.
5Validity  of various approvalThe validity of the various approvals which expire between 1st April 2021 till 31st July 2021 should be extended till 31st August 2021.
– 3 –    
6Notices for Proceedings under various Laws like Income Tax, GST, Company Law, Labour LawsAs entrepreneurs need to focus more on survival and running the business during these challenging times, no notice under Income Tax or GST or Labour Laws should be issued during the Lockdown Period and the following three months and where issued, provide adjournments as and when requested.

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