GCCI chief urges special package for Surat

Ahmedabad, Aug 27 (UNI) The Gujarat Chamber of Commerce&Industry has urged the Chief Minister Narendra Modi for a special package for the flood-hit Surat district.

The GCCI president Pankaj R Patel in a letter to Mr Modi has said that whatever package was offered to the Kutch district during the earthquake, the same package should be given to flood-ravaged Surat to help it bring come out of financial depression. Those who have to pay interest on loans a subsidy of six per cent should be given.

This should apply to trade and industry. And also for those reshedulement of loans is being done the interest subsidy has to be given, a GCCI statement said here.

The banks and financial corporation should also help by giving loans to small business and traders to recommence their activities.

Mr Patel further said that for whom electricity bills are due from August one should be given six months extension and no penalty be levied on late payment. There should be full duty relaxtion and it should be treated as form of subsidy.

VAT and octroi taxes should be waived from August one to March 31. The octroi due has to be paid by the state government to the Surat Municipal Corporation, Mr Patel said.

Apart from the above he also suggested speedy reimbursement of insurance claims, concessional rates of interest to be charged by banks, reschedulement of bank loans for the flood hit units, interest waiver upto 90 days, quick loans without collateral security for rehabilitation of units and speedy restoration of infrastructural facilities would aid in restoring normalcy.

Refering to the textiles industry, Mr Patel said Surat was an important centre for textiles with over five lakh powerlooms. In order to bring life into this sector the Centre should declare a comprehensive package.

Urging the state government to represent the case of trade and industry to the Central Board of Direct Taxes (CBDT), Mr Patel said that state government should request CBDT, which scrutinises tax cases till December 31, should postpone it to next financial year as the floods have destroyed most of the records of businesses.

Many appeals are pending and there should be no force in tax collection. Nor should bank accounts be seized or notice for advance be issued. The expected tax collection from Surat was Rs 1,250 crore and given the situation this figure should be revised suitably, Mr Patel said.

Under section 44 (ab) of the Income Tax Act all manufacturing units have to audit their accounts by October 31. This also should be extended till January 31, 2007, and no penalty should be charged.

He also urged to extend the filing of returns from last date of October 31, 2006, until January 31, 2007.

On fringe benefit tax installments have to be paid every three months and this has to be postponed from October 15, 2006, to January 31, 2007. If tax is paid late no interest should be charged. Direct tax returns also be extended till January 31, 2007, and assessments should not lead to any harrassment, he added.

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