Federation of Surat Textiles Traders' Association (FOSTTA) has requested Union finance minister to raise the bar of mandatory audit from Rs 60 lakh to Rs 1.5 crore. It said the TDS limit on job charges must be raised for the textile traders from the present Rs 75,000 to Rs 5 lakh to achieve a growth rate between 10 to 20 per cent.
In a letter to Union finance minister, the association also demanded raising the income tax minimum limit to Rs 3 lakh from the current Rs 2.5 lakh.
The association feels that Surat is ranked among the top 10 cities of the country but lacks basic facilities affecting growth of its business sector. The letter raised the issue of air connectivity and said the city must have proper air connectivity for passengers and cargo. The association also wanted expansion of railway station and setting up of a proper port for maritime transport.
Under the present system, those who don't show eight per cent net profit in their yearly return must get the audit done. But, in the present day competitive wholesale market, it is not possible for a trader to have eight per cent net profit. Demanding removal of this clause, the association says unless one makes 15 per cent gross profit, it will not be possible to have eight per cent net profit.
In a letter to Central Board of Direct Taxation, FOSTTA has said that for the textile industry in the city to grow at 20 per cent, a conducive atmosphere is required. With some small concessions, the Central government will be able to generate enough optimism, it said and urged that these demands be included in the 2011-12 budget.