A NEW TAX 2.75% (TCS) TAX COLLECTION AT SOURCE LAUNCHED ON TIMBER, SCRAP AND LIQUIR. AS SOON AS THE TAX NEWS DECLARES, THE ASSOCIATIONS OF SCRAP & LIQUIOR STARTED THEIR FIGHTS WITH THE GOVERNMENT AND LATER ON THEY SETTLED DOWN WITH 1% LEVY OF TAX CALLED AS TCS.
THE TIMBER ASSOCIATION COULD NOT TAKE THE ACTION IN THE SAME SPEED AND THE TAX OF 2.75% IS IN ORDER WITH LOT OF CONFUSIONS.
WHEN ASSOCIATIONS OF TIMBER MERCHANTS STARTED THEIR ACTIONS AND DISCUSSIONS WITH THE GOVERNMENT DEPARTMENT IT FOUND THAT THE TAX POLICY IS VERY CONFUSING AND IT IS NOT SURE EITHER IT IS APPLICABLE OR NOT.
SOME OFFICIAL PEOPLE OF THE ASSOCIATION MET A SENIOR OF INCOME TAX DEPARTMENT AT THE LEVEL OF COMMISSIONER, HE FRANKLY TOLD THAT WE ARE HEARING ABOUT THIS TAX, BUT (OUT OF OFFICIAL LEVEL) WE DO NOT KNOW HOW AND FROM WHOM TO COLLECT THIS TAX, HE SAID EVEN WE DONT KNOW WHETHER THIS TAX IS APPLICABLE OR NOT.
HE SAID I AM STATING AT A NON-OFFICIAL LEVEL THAT IN FACT WE WILL KNOW THE PROPER POLICY OF THIS TAX AFTER A YEAR’S PERIOD OF IT’S APLLICABILITY.
NOW IN MUMBAI, THE TIMBER MATERIAL COMES FROM CALICUT, MANGLORE AND OTHER REGIONS OF INDIA IN HANDS OF AN AGENT, IF THEY CHARGE 2.75%, THE AGENT WILL CHARGE 2.75% TO THE SECOND SELLET, THEN THE SECOND SELLER WILL CHARGE TO THE RETAILERS AND THE RETAILERS WILL CHARGE TO THE CUSTOMER.
IS THIS A TAX TO BE COLLECTED 4 TO 5 TIMES BY GOVT.?
THE TIMBER BUSINESS IS VERY SLOW NOW A DAYS IN ALREADY DEVELOPED CITY MUMBAI THERE ARE MORE THAN 1600 TIMBER MERCHANTS AND A LOT OF COMPETITION IS THERE, MARGIN IS NOT MORE THAN 8% IN ANY DEAL AND THIS IS MAXIMUM.
IF GOVT. START COLLECTING THIS TAX, THE TIMBER MERCHANT HAS TO SHUT THERI COMPANIES AND BUSINESS.
THIS TAX IS ABSOLUTEYL INJUSTIFIED.
NOW 10% OF TIMBER MERCHANTS HAS STARTED COLLECTING THIS TAX. !