Industrialists divided on amendment to Section 43 B of Income Tax Act

Ludhiana, April 23

Industrialists in Ludhiana seem divided over the amendment of Section 43 B of the Income Tax Act. The petition moved in the Supreme Court by United Cycles and Parts Manufacturers’ Association (UCPMA) was rejected and the association was asked to file it in the Punjab and Haryana High Court. But the members of the association are divided over the decision whether to move the High Court or not.

Avtar Singh Bhogal, senior vice-president, UCPMA, told The Tribune the association had moved to the Apex Court but the application was rejected and it was told to move to the High Court.

“This time, we are not going to take any hasty decision as the association members have already spent about Rs 10 lakh on arranging senior lawyers in the Supreme Court. We are going to hold a meeting with the members first, as few are of the opinion to move to the Court while many others believe that it was a welcome step and there would be more transparency in the work if this amendment is applicable”, said Bhogal.

At the same time, many industrialists feel if they are to take materials from MSMEs on bills, there should be no problem in providing the payment within 45 days.

“But we are not comfortable with this change. We maintain a good rapport with each other and stocks are purchased on credit for a period of 90-150 days.” said a bicycle manufacturer. “Suppliers will start providing stock without bills or for they will furnish bills only for around 20-30 per cent,” he added.

The industrialists added because of this amendment, there were less orders and less production of material in the factory units.  

#Supreme Court