Textile traders meet Finance Minister, raise issue of new norms

As per the new norms, a buyer is supposed to make payment for the purchase from MSME unit within 45 days. If he fails, the amount will be considered as profit of the buyer

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Textile traders from the city met union finance minister Nirmala Sitharaman on Friday in New Delhi and raised concerns over the newly introduced payment norms in the Income Tax Act. Meanwhile, city’s weaving industry players have supported the new norms and demanded strict implementation in a letter written to Prime Minister Narendra Modi on 9 February, 2024. As per the new norms, a buyer is supposed to make payment for the purchase from MSME unit within 45 days. If he fails, the amount will be considered as profit of the buyer. The amendments came in force from current fiscal. The textile traders made representation on three major points. First, postpone the implementation of the rules for a year. Second, small and big traders should be included under MSMEs while enforcing this rule. The third major demand of the textile traders was to extend the time limit of payment from 45 days.

“We met the FM along with BJP Gujarat president C R Patil. The minister heard our concerns and assured us of a favourable decision,” said Kailash Hakim, president, Federation of Surat Textile Traders’ Association (FOSTTA). Along with FOSTTA, members of Maskati Cloth Mahajan, Ahmedabad, and South Gujarat Textile Traders Association (SGTTA) were also part of the delegation.

Within hours of the textile traders meeting the FM, Surat’s weaving industry leaders raised concerns over the demand for extension of the payment time limit from 45 days. Federation of Gujarat Weaver Welfare Association (FOGWWA) sent a letter to PM and demanded that there should be no change in the norms. FOGWWA, however, agreed to extend the implementation of the rule by a year. “We oppose the demand for extending the time limit in payment from 45 days. The new norms have been introduced for overall improvement of the industry and it should not be changed,” said Ashok Jirawala, president, FOGWWA. Following the payment time limit rule, textile retailers from across the country have stopped buying from traders in the city fearing the impact of the new norms. Textile market insiders claimed that there was a drop-in trade by almost 50%.

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