India : Relax payment rules, increase withdrawal limits: AEPC

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Relax payment rules, increase withdrawal limits: AEPC

19
Dec '16

The Apparel Export Promotion Council (AEPC) has suggested the government to increase withdrawal limits and relax payment rules for provident fund, employees’ state insurance (ESI) and service tax for exporting units for the time being. The council made the suggestions to help the garment export industry make the transition towards cashless payments.

The association has urged the government to ensure availability of cash at various banks in key clusters. It suggested increasing withdrawal limits to allow companies to make payments to loaders, artisans and more.

The council has also recommended the government to open RMG export sector’s workers’ accounts on the basis of unique identity and maintain them in Employees Provident Fund Organization (EPFO) instead of initiated fresh KYC requirements, according to media reports. Banks can also consider taking PAN details of the employer as opposed to the employees.

Statutory payments made to the Central/state government by garment exporters in the form of PF, ESI, service tax or TDS can be relaxed and should be given a grace period, said AEPC.

The RMG export industry has also asked Reserve Bank of India to notify general extension in the reliasation of export profits to 1 year (365 days) due to demonetisation. The association has suggested increasing the deposit rate of interest to encourage credit balance retention in bank account books, as opposed to cash withdrawal. (KD)

Fibre2Fashion News Desk – India

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