By Our Business Affairs Bureau
BHUBANESWAR/BARBIL/ANGUL/JHARSUGUDA: With near about 19 iron ore and manganese mining blocks have stopped operations in Keonjhar and Sundargarh after lease expired on March 31 and COVID-19 positive cases reached at 39 in Odisha, backed by nationwide shutdown by the Prime Minister Narendra Modi led Government, the Odisha Sponge Industries Manufactures’ Association(OSIMA), an apex body of MSME in the State, has expressed serious concern and apprehending huge economic loss due to less production in view of the lockdown and sought relaxation in tax payments.
Due to outbreak of the Covid-19 pandemic, there is severe disruption in the normal working of almost all sectors. To mitigate the hardships of taxpayers, the CBDT has issued some directions/clarifications by exercise of its power u/s 119 of the Income-tax Act, 1961 (the Act) few days back.
With lapse of several major iron ore mines from 31 March, 2020, it apprehend scarcity of iron ore.The recent auctions have thrown illogically high premiums even for merchant mining and high prices may lead to closure of sponge iron industries in the State. OSIMA has requested State Government to direct OMC to provide ore to state based industries at a reasonable price and so far Coal is concerned MCL be directed to extend validity of Delivery orders by 30 days from the date lockdown is lifted. OSIMA has requested not to forfeit EMD for non-lifting/ failure to deposit money during lockdown.
“For we like MSME, its very tough time now and coming next few months will be very tougher,” added a CMD, of Angul , Odisha, based Sponge Iron Plant. Supporting him, another CMD, who runs his plant in Barbil in Keonjhar, however argued that since raw material supply and supply of finished products have been affecting even despite missive from Union Steel and Mines Secretaries and repeated attempts by Union PNG-Steel Minister Dharmendra Pradhan , manufacturers are in Odisha, facing tough time in many industrial zones of Odisha like in Jharsuguda-Sambalpur, Dhenkanal-Angul, Kalinga Nagar-Sukinda-Jakhapura in Jajpur, Joda-Barbil-Koira-Rajgangpur belt of Keonjhar-Sundargarh and Paradip in Jagatsinghpur.
OSIMA has requested the State Government to consider all type of delays/non filing of applications/returns/permissions/ renewals may be condoned by executive order necessity of seeking individual relaxation from 01 March 2020 to 30 May 2020 and allow filing of all documents by 30 June 2020. OSIMA has also said that high electrical tariff in the state has resulted in closure of almost 90 Percent of power consuming industries like induction furnace, small Ferro-alloy units etc. in MSME sector.
It is requested that on Payment of Electricity Bills Grace period of 45 days for 3 months beginning with March 2020 be granted for payment monthly electrical bill i.e. Due date for payment of Bill for March be revised to 15 May 2020.DISCOMS be advised not to levy minimum demand charges up to June 2020.
Waiver of electricity duty on industrial consumption may kindly be waived for next 6 months.
State based power intensive units need your immediate intervention to provide them power a competitive rate as more than 90% of such units have closed due to provision subsidy/lower tariff by adjoining states.
OSIMA has requested that power tariff be reduced /subsidies for power intensive industry by at least Rs 1.50 per unit for units having connected load up 25 MW. The lockdown has affected the transport sector which has come to stand still. It will take some time to come to normalcy even after lifting of lockdown and accordingly the road tax be waived up to 30 June 2020. Delay in registration of new vehicle due to lock down be allowed up to 30 days of lifting of lock down.
Delay in renewal of permits/fitness certification for all type of vehicle be condoned up to 30 June 2020. They urged extension of date of payment falling due during lockdown by 30 days from the lifting of lock down. In order to encourage and support the local industry in their time of need, 50 Percent of IGST being paid may be refunded for the next 12 months for meeting payments to Banks.
Meanwhile, due to outbreak of the Covid-19 pandemic, there is severe disruption in the normal working of almost all sectors. To mitigate the hardships of taxpayers, the CBDT has issued the following directions/clarifications by exercise of its power u/s 119 of the Income-tax Act, 1961 (the Act):
All the assessees who have filed application for lower or nil deduction of TDS/TCS for F.Y. 2020-21 and whose applications are pending for disposal as on date and they have been issued such certificates for F.Y. 2019-20, then such certificates would be applicable till 30.06.2020 of F.Y. 2020-21 or disposal of their applications by the Assessing Officers, whichever is earlier, in respect of the transaction and the deductor or collector if any, for whom the certificate was issued for F.Y. 2019-20.
In cases where the assessees could not apply for issue of lower or nil deduction of TDS/TCS in the Traces Portal for the F.Y. 2020-21, but were having the certificates for F.Y. 2019-20, such certificates will be applicable till 30.06.2020 of F.Y. 2020-21. However, they need to apply at the earliest giving details of the transactions and the Deductor/Collector to the TDS/TCS Assessing Officer as per procedure prescribed.
Further, on payments to Non-residents (including foreign companies) having Permanent Establishment in India, where the above applications are pending, tax on payments made will be deducted at the subsidised rate of 10% including surcharge and cess, on such payments till 30.06.2020 of F.Y. 2020-21, or disposal of their applications, whichever is earlier (Order passed on 31.03.2020).
In case of pending applications for lower/nil rate of TDS/TCS for F.Y. 2019-20, the Assessing Officers have been directed to dispose off the applications through a liberal procedure by 27.04.2020, so that the taxpayers may not have to pay extra tax which may cause liquidity issues to them (Order passed on 03.04.2020).
To mitigate the hardships of small taxpayers, it has been decided that if a person had submitted valid Forms 15G and 15H to the Banks or other institutions for F.Y. 2019-20, then these Forms would be valid up to 30.06.2020. This will safeguard the small tax payers against TDS where there is no tax liability (Order passed on 03.04.2020).
All the above orders passed u/s 119 of the Act are available on www.incometaxindia.gov.in under the head Miscellaneous Communications.
