A large number of small and micro units are in a fix caught between the sales tax circle inspectors on the one hand and using the online mode to remit their sales tax dues on the other.
“The commercial taxes department is refusing to accept cheque towards our sales tax dues and instead compelling us to remit our dues only via the electronic mode. And for any delay in the remittance, they collect Rs 2,000 as compound fees. Small and micro units are in a fix over this e-payment issue as many of us are computer-illiterate. We do not have the wherewithal to engage a systems manager to do the job,” says K Maniraj, President, Kovai Power Driven Pumps and Spares Manufacturers' Association (KOPMA).
The association has in a communication addressed to the Deputy Commissioner of Commercial Tax Department highlighted the plight of small and micro units.
“Most of us are running the show ourselves from focusing on production to marketing and collection of dues from customers. Our profits are meagre. We cannot afford to pay for a full-time accountant,” Maniraj told this correspondent.
While welcoming the advancements made on the technology front, the association suggests that the department could consider an arrangement with banks for tax collection. “The commercial tax department can take cue from the income tax department and the Corporation by opening an account for the purpose of sales tax dues with select banks.”
While stating thus, Maniraj pointed out that in online remittances, the payee does not get the verifier online acknowledgement. Élse we will be in a position to produce the acknowledgement to confirm our payment before the due date, he said and appealed that the department accept cheque remittances.