Remove provisions impacting industry from draft DTC: SDA
July, 01st 2010
Surat Diamond Association (SDA) has made a representation asking for the removal of certain provisions, which are likely to create a big impact on the gems and jewellery sector, from the draft Direct Tax Code (DTC).
SDA office-bearers, who met the chief commissioner of income tax (I-T) Jaswant Singh on Tuesday and made a representation saying that the concerned provisions in draft DTC are likely to bring disastrous consequences for the diamond industry, which is one of the two most important industries of Surat and a major contributor to the national GDP and foreign exchange basket. The commissioner has been requested to make the recommendation to the Union ministry of finance.
The industry leaders said the section 139(2)(f) in the draft DTC gives wide powers to the investigating officer to seize stock-in-trade such as bullion, precious and semi-precious stones and jewellery. The stocks of precious and semi-precious stones are valued in crores, and if on any information or suspicion the stocks of the enterprise concerned are seized by the department, the situation could amount to shutting down of the unit.
SDA president Rohit Mehta said, "We have already made a representation to the Union finance minister during his visit to the city this month. We want the I-T department to recommend the removal of such provisions from the draft DTC as well."