SIHMA seeks withdrawal of notices issued to hosiery manufacturers
The South India Hosiery Manufacturers Association (SIHMA) has appealed to the State government to withdraw notices issued recently to hosiery units that had paid 1% tax for inter-State trade when Central Sales Tax (CST) was in force.
In a memorandum to Tamil Nadu Chief Minister Edappadi K. Palaniswami, the association president A.C. Easwaran said the hosiery units started regular production recently after nearly six months disruption due to the spread of COVID-19. Though the government has extended supportive measures to help the industry revive, the Commercial Tax Department issued notices to several units recently regarding CST that was implemented nearly 15 years ago.
Mr. Easwaran explained that since 2004-2005, hosiery manufacturers who were into inter-State sales were paying 1% CST. Since 2007, after Value Added Tax (VAT) was introduced, when there were reports that C-form was not available, many units paid just the 1% tax. Though notices were not issued in the last 10 years, the Department has sent notices to the units now. Not all the units have the documents of 10 or 15 years to prove that they have paid the CST.
The association said the units should be permitted to pay just the 1 % tax for the period when C-form was required and the notices issued to those who had already paid the tax should be withdrawn.