In his budget suggestion submitted to the government, AIMTC President Kultaran Singh Atwal has said that road transport is an important link in the supply chain. The supply of goods was common throughout the country only due to this important contribution of Road Transport Sector in the Coronkaal period. Now the government should worry about this crisis-prone sector and one crore jobs associated with it. Kultaran Singh demanded that the transport sector be given “specific rating”. AIMTC has said that the road transport sector and common people should be relieved from the impact of rising petrol and diesel prices. For this, the government should announce an excise duty cut in the Union Budget.
Road transport sector demands this
- Under TDS 194C and 194N of the IT Act, TDS should be eliminated from the road transport sector.
- TDS is redundant and impractical under GST Act 194C after the introduction of GST.
- Reductions are made in the name of millions of unaccounted TDS from small operators, which are neither deposited from the government treasury nor claimed refunds.
- Those who are deducted take 3 years to claim the return.
- The operations of APMC and Road Transport sector are based on cash. Like agricultural produce marketing companies (Agriculture Produce Marketing Committee, Agricultural Produce Market Committee, APMC), the road transport sector should also be exempted from 2% TDS on annual cash withdrawals of more than Rs 1 crore.
- Rationalization of estimated income tax under section 44AE of IT Act. The presumptive income tax imposed under it is impractical, flawed and irrational. It is based on the gross vehicle load while it should be based on the carrying capacity of the vehicle.
- Estimated income is not rational, where it has been increased from 100% to 633% for different capacity of vehicles. This is not according to the ground reality.
- GST should be zeroed on third party premium on Goods Carrying Vehicles and Passenger Commercial Vehicles.