Ludhiana, July 17, 2017: Federation of Industrial & Commercial Organization popularly known as FICO under the chairmanship of S.Gurmeet Singh Kular submitted 18 suggestions to Sh.Rakesh Verma (IAS) Secretary Industry & Commerce, Government of Punjab for the new industrial policy 2017. The suggestions are as under:
"• Deemed Input Tax Credit to Bicycle Industry: We would like to draw your kind attention towards anomalies in eligibility criteria for credit on goods of bicycle components like Handle, Saddle, hub, paddle, Rim, Chain, frame, Fork etc. held in stock on appointed day. As these parts are exempted from whole of excise duty, hence credit of eligible duties embedded in cost is not available to dealer/traders and to manufacture who procure these components from outside as intermediary products as per section 140(3) of Transition provisions of CGST Act, 2017. But however, manufacturers of these components are eligible to get credit of eligible duties of inputs contained in finished goods held in stock on appointed day as per section 140(3) of CGST Act, 2017. Further as per condition (I) of Rule 3(b) of transition provisions, traders/dealers are entitled to get credit @ 40% or 60% as the case may be, only if such goods were not wholly exempted from duty of excise specified in First Schedule to the Central Tariffs Act, 1985 or were not Nil Rated. Hence small trader/ dealers of bicycle parts and also manufacturers who procure these components from outside parts as intermediary products have been deprived off from otherwise rightful claim. Approximately 70% of material used to manufacture these components is duty paid and the same is embedded in the cost of the component. Anomaly is that credit of the same is not available for inputs held in stock on appointed day. Sir, you will appreciate that the government is very much concerned to check increase in prices in GST regime and also keen to pass on the benefits to the customer. But however these anomalies in transition provision are hindrance to achieve the objective. We therefore request your good self to address our genuine issue elaborated above and advise suitable amendments in transition provision
• VAT Refund: - Last four month’s VAT Refund is lying with government, it is not a grant or a subsidy, it is industry’s own money. Also with the implementation of Goods & Service Tax based Taxation System, Industry’s VAT refunds at least till 31.03.2017 should be processed and refunded at the earliest so that the capital of the industry can be utilized at the faster pace. FIFO (First In First Out) system should be exempted while making refunds. To facilitate the industry in this crucial phase of change over, the VAT Refunds should be made at the earliest.
• C- Forms: - Form C should be exempted while making refunds to Tax Payers as Old Refunds are still pending with the department, Now with implementation of GST, every manufacturer, dealer, trader is busy in understanding the new taxation system, in this crucial period, the C- Forms should be exempted as Huge amount of Industry is stuck with the government. Or VDS for C-Form should be introduced @ Rs.250/- per Lakh payable to the government and assess the case.
• Exemption of Consent fee to green Industry: - in Punjab there is consent fee for all the (Green, Orange, Red) Categories. Green Industry is contributing towards the environment by not creating any kind of pollution. So the industry under Green Category should be exempted from the Consent Fee from Punjab Pollution Control Board.
• Investment Subsidy: - The Subsidy should be provided to set up new Industry in Punjab, this would not only encourage new investments in industrial segment but also create more employment opportunities. So subsidy on investment should be provided in new Industrial Policy.
• Splitting up of power connection: - When a family of a manufacturer divides, electric connection should also be allowed to split up. In PSIEC there is a provision to split the plot so the power connection should also be allowed to split.
• VDS of PSPCL: - There are so many VDS (Voluntary Disclosure Schemes) for SP/ MS/ DS/ NRS but in SP/ MS there is a restriction of category change. So, Category change should be allowed to facilitate the Industry.
• TUF for Bicycle Industry: - Bicycle Industry in the mother industry of Punjab which makes India the 2nd Largest Manufacturers of World. So Bicycle Industry needs (TUF) Technology Upgradation Funds to compete with the world & to become India largest Manufacturers of Bicycle in the World.
• Change of Category: You are hereby requested to change the category of Small Power from 19 kw to 50 kw & Medium Supply category from 99 kw to 150 kw in New Industrial Policy as there is gear driven load instead of single motor driven system.
• Infrastructure of Focal Point: - In the New Industrial Policy, Collection of VAT, Service Tax, Central Excise, Water & Sewerage Charges, collected from Focal Point should be used only for the development of that Focal Point because there is very bad condition of roads & infrastructure of Focal Points.
• Un-authorized Use of Electricity UUE: - PSPCL release connection to the industry for particular use. If one manufacture bicycle parts and when the same industry starts new line just like heat treatment, PSPCL penalized & charging UUE charges. In some other cases where the Unit gives some portion on rent to some other industry by installing a sub-meter, UUE charges are also made applicable to the owner of the connection. Such charges should not be made applicable when the consumption is through PSPCL meter. There are thousand cases of UUE pending with department. So PSPCL should monitor the reading of meter not the usage in the factory.
• Lower Rate of Interest for Machinery Purchase: - Government should focus more on the development of Industry. as we buy a car, it is very easy to get loan at the rate of 8% to 10% per annum. But if we purchase machinery we loan at much higher rate of interest ranging from 12% to 14%. So same category rates of interest should be applicable for the purchase of machinery.
• Helpdesk: - Helpdesk should be launched to accelerate the Industry as there is no helpdesk in office of General Manager, District Industry Centre, and Helpdesk will guide the industrialist about what to do & what not to do. It will definitely accelerate the industry.
• 14. Night Tariff: Punjab State Power Corporation Ltd has discontinued night tariff For Large Supply Consumers, but it should be reintroduced as Punjab is now Surplus State in Power.
• Skill Development Centers: - Special training courses are needed to be provided to the unemployed youth, courses should be customized as per the requirements of that particular area where they want to secure a good job. As industrial zones in Punjab are different like, Ludhiana is more into Bicycle Industry, Hosiery & Textile Industry, Jalandhar industry is more into hand tools, Mohali is more into IT Sector. So Multi Skill development centers are where courses should be focused as on local industry’s needs, so that industry will be able to absorb more youth and make them employed.
• Transportation to students: - For a Village to City private bus road tax is Rs.300000/- which should not be more than Rs.10000/- as these buses are the prime medium used by villages to get themselves transported to cities for their livelihood. Lesser fare rates will encourage more youth from villages to come to cities and increase their chances of being employed.
• Brain Drain: - Today the youth of Punjab, especially the educated ones, consider only one option for better life and that is to go abroad Uk, USA, Canada, Australia, New Zealand etc., there is a need to provide better youth with employment opportunities here in Punjab, so that the youth should not migrate to foreign countries to earn their livelihood. They need to be encouraged, motivated by means of incentives to stay in Punjab and work for the progress of Punjab and India.
• Women Hostels: Women Empowerment is the need of the hour, women can be easily absorbed in Hosiery and Textile Industry. As women have done wonders in industry especially in Textile and Hosiery Industry, whether we talk about China, or Taiwan, women have played a vital role in their progress. We should also encourage our women especially rural women to work in the textile industry, where they can do wonders, but here It is not safe for women to travel at night, so there is a need of Women Hostels with mess facility, where women can easily stay and work for the betterment of industry."
Amongst present were S.Gurmeet Singh Kular President FICO, S. Manjinder Singh Sachdeva General Secretary, Sh. Rajeev Jain Secretary, Sh. Mandeep Chowdhry Media Advisor and S. Satnam Singh Makkar Propaganda Secretary FICO.