AARSA demand roll back of tax payment through Establishment Act
Auto spares and repairs workshops brought under the heavy duty excise by the Labour Department have raised an objection from the small businessmen who have demanded a roll back to their original tax structure.india Updated: Nov 19, 2009 19:40 IST
Auto spares and repairs workshops brought under the heavy duty excise by the Labour Department have raised an objection from the small businessmen who have demanded a roll back to their original tax structure.
A government order LC/FS/Misc, Dated 10-6-2007 was issued for all auto spares and repairers to abide by the new directive for payment of taxes under the Factory/Boilers Act which they earlier used to pay under the Establishment Act.
Though no official action was initiated in this regard since then to collect the revenue, the Labour Department, however, came up with a reminder to all the workshop owners in September 2009 which was followed by another stringent one recently asking them to deposit the tax from November 1.
“We met the Revenue and Relief Minister Raman Bhalla who accompanied us to the Labour Minister Abdul Ganai Malik who gave us patient hearing besides an assurance to look into the matter,” said Dinesh Gupta, general secretary, All Auto Spares & Repairers Association.
He further said that since the matter has not as yet been cleared off through black and white, the delegation of the Association is scheduled to meet the minister again on November 23.
“The delegation of the association is to meet the minister again as he has assured an appropriate action if the requirements for payment of the taxes of the workshops fall into the category as demanded by them,” said Abdul Sattar, secretary to the Minister Abdul Ganai Malik.
As per the notification, it was directed to the auto workshops to pay the same amount of tax as is paid by heavy machinery workshops like factories and boilers.
Dinesh Gupta informed that since the system in auto workshops is of very small nature pertaining to light tool and machinery that even does not need a pollution clearance certificate, bringing them into the bigger ambit was a deliberate manipulation of the labour department to harass the petty auto repairers pursuing their work in small kiosks even.
“As we have submitted the actual bearings of our Association’s demand for a roll back to tax payment through Establishment Act only, we are to meet the minister again on Monday in this regard and are very hopeful of getting a favourble decision,” said AASRA general secretary.