REPORT OF VICE PRESIDENT 2020-21
A) Names of the affiliated associations under my jurisdiction
In my Jurisdiction
1) The Paper Merchants Welfare Association, Vijayawada-520001.
2) Telangana Paper Merchants Association, Secunderabad-500003.
3) Orissa Paper Dealers Association, Cuttack– 753002.
B) Whether you have visited any of the Associations during the year, if not the reasons:
1) I am in touch with Telangana Paper Merchants Association, Secunderabad – 500003 on
phone due to pandemic corona
2) I am in touch with the paper Merchants Welfare Association, Vijayawada-520001 on
phone due to pandemic situation corona.
C) What are the views of the Associations be it on trade, the functioning of FPTA,
Government policies etc: –
1) In my regular interaction with the members of our association they are facing one
peculiar problem. Most of the members input credit of GST is being held up to with GST
department in regular trade, for which we should be paid interest from the gst
department, just like we get interest from the income tax department for refund of
income tax.
2) We recommend that TDS and TCS should be abolished on sales and purchases
3) We recommend that e-way bill limit should be increased to on lakh rupee.
4) We recommend that insurance should be introduces for all our supplies.
D) Whether you are in touch with the President and FPTA Secretariat regularly: –
I am very often in touch with FPTA President Mr. Chandra Dev Chowdary Ji and FPTA
Secretary Mr. Hiren Karia Ji and taking support and suggestions to perform my duty.
E) Whether you have attended the managing committee meeting of FPTA during the year: –
MC MEETINGS: Two MC meetings conducted. FPTA vice president participated on year:
19.09.2021 online.
Paper day activity:
Year 2020: Tree plantation activity taken up in entire Andhra Pradesh
Not participated in Cuttack meetings due to Covid pandemic.
F) What is your assessment with regard to the functioning of FPTA. Whether you have any
suggestions which would give a boost to his working: –
Generally, the functioning of FPTA is improving considerably since its inception. I feel that
certain support is essentially required at always to improve more and more its status.
G) PMWA Activities, Andhra Pradesh
Service activities:
Year 2020: In covid pandemic we have done free distribution of bathing soap, washing soap,
cooking oil and hand sanitizer to more than 5000 people.
Year 2021: water services at 8 different places in Andhra Pradesh state. We are giving water
service in summer for the past 10 years.
H) Any other suggestions: –
Advising that to make suggestions to the government in policy making in Gst day to day
becoming complicating the act.

Thanking

REPORT OF THE CONVENER FOR INDUSTRY AFFAIRS COMMITTEE FOR THE
ANNUAL GENERAL MEETING BEING HELD ON 26TH SEPTEMBER 2021.
Warm Season Greeting to all the Paper Traders of India.
Very happy to inform you that FPTA under the leadership of Shri Chandra
Dev Chaudhary and Shri Hiren Karia has maintained excellent relations
with the industry and various associations connected with the paper traders
and paper industry during the last year.
1. IPMA (Indian Paper Manufacturers Association)
2. IARPMA (Indian Agro and Recycled Paper Mills Association)
3. INMA (Indian Newsprint Manufacturers Association)
4. IPPTA (Indian Pulp and Paper Technical Association) 
FPTA was in regular touch with all the Presidents and Secretary Generals
of the above associations throughout the year. Due to Pandemic FPTA did
not had any personal meetings but were in touch on phone and through
virtual meetings. All the above associations have participated in PAPER
DAY CELEBRATIONS held on 1st August Virtually conducted by FPTA.
FPTA and our Members participated in various webinars conducted by
these associations during the year.
With the help and support from the Industry, FPTA conducted several
webinars to bridge the gap of information between the traders and industry.
It helped the industry to understand the difficulties of paper traders and
paper traders understanding the difficulties of the industry. This type of
interactions is very important for the trade and request FPTA to regularly
conduct webinars with the industry at least quarterly in future.
The working coordination with the trade bodies can further improve if FPTA
can have a Secretary General stationed at New Delhi. It is very important
for the FPTA to have a PAID SECRETARY GENERAL STATIONED AT
NEW DELHI who is answerable for the progress or the government views
on various decisions taken by the FPTA.
I want to thank my committee advisor Shri Krishnendu Bhattacharjee,
Kolkata and Members Shri Ravi Kumar Rathi, Hyderabad Shri Padam
Chand Jain, Delhi and Shri Deepak Mittal, Bangalore. I want to thank
President Shri Chandra Dev Chaudhary, Dynamic Hon. Secretary Shri
Hiren Karia and FPTA Secretariat for the support and cooperation. I want to

thank all the Past Presidents and MC Members of FPTA for the support
and cooperation extended and for giving me an opportunity to serve FPTA
as Convener Industry Affairs.
I want to thank all the PATRON MEMBERS for selecting me as their
representative in the Managing Committee.
Wishing all the Paper Traders more opportunities to increase business and
profits.
B.R.RAO
CONVENER- INDUSTRY AFFAIRS COMMITTEE
Note:  My committee report for the year 2019-20 was already sent before
the last Agm held on 26-9-2020

Respected Members,  

Consolidated report of Arb Committee 2019-20 & 2020-21

Dear Members,

In view of the above, the Income Tax Department has facilitated a new functionality “Compliance Check
for Section 206AB & 206CCA” to facilitate tax deductors/collectors to verify if a person is a
“Specified Person” as per section 206AB & 206CCA. 

This functionality is made available through the Reporting Portal of the Income-tax Department.

This for your Information and necessary action

Regards

For FPTA

Hiren Karia

Hon. Secretary

Compliance Check for Section 206AB & 206CCA – QRG

1. No. 225/61/2021/ITA-II
   Government of India
   Ministry of Finance
   Department of Revenue
   Central Board of Direct Taxes (ITA-II division)

 North Block, New Delhi, the 10th June, 2021

To

AII Pr. Chief-Commissioners of Income-tax/Chief-Commissioner of Income-Tax AII Pr. Director-Generals of Income tax/Director-Generals of Income-tax.

Madam/Sir

Subject: Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2021- 22 – conduct of assessment proceedings in such cases – regarding:-

Kindly refer to the above.

2. The parameters for compulsory selection of returns for Complete Scrutiny during Financial Year 2021-22 and conduct of assessment proceedings in such cases are prescribed as under:

3. Without prejudice to the above, the cases which are selected for compulsory scrutiny by the International Taxation and Central Circle charges following the above prescribed guidelines, shall, as earlier, continue to be handled by these charges.
4. The exercise of selection of cases for compulsory scrutiny on the basis of the above parameters and service of notice u/s 143(2) of the Act will have to be completed by 30.06.2021. As per the amendments brought vide Finance Act, 2021, the time limit for service of notice u/s 143(2) of the Act has been reduced to three months from the month of end of the Financial Year in which the return is filed.
5. These instructions may be brought to the notice of all concerned for necessary compliance.

(Prajna Paramita)
Director to the Government of India

Copy to:

1. PS to FM/PS to MoS (F)
2. PS to Secretary (Revenue)

iii. Chairman, CBDT & All Members, CBDT

1. All Joint Secretaries/CsIT, CBDT
2. O/o Pr. DGIT (Systems) with request to upload on the departmental website
3. CIT, Data-Base Cell for uploading on irsofficers website

(Prajna Paramita)

XYZ Paper Co.
Address
Address
City – Pin Code

Sub: Declaration in relation to Section 206AB/206CCAof the Income Tax Act, 1961.

Authorised Signatory

For ……………………………..

Name

Designation

Finance Act 2021 has introduced a new Section in TDS – Section 194Q TDS on Purchase of Goods, which will be coming into effect from 1st July 2021.

Provision – Section 194Q of Income-Tax Act

A person (Purchaser) will be liable to deduct TDS if-

1. His Turnover during last year exceeds Rs.10 crores. AND
2. His purchase of goods (Not Services) of Value exceeding Rs.50 Lakhs (Including GST) in the current year from a Seller (PAN-Wise). AND
3. Purchase is made from a Resident Supplier.

Rate of TDS: – 0.1% of the value of transactions exceeding Rs. 50 Lakhs. If PAN of Seller is not provided to Buyer, TDS @ 5% is to be deducted (section 206AA).

Time Limit for deduction of TDS: – Earlier of payment made or purchase booked by Credit to Account of Seller. Proviso to the said section clarifies that even if the amount is credited to any account whether it be Suspense or any other, such credit shall be deemed to be credited to Account of Seller and TDS shall apply accordingly.

Non-compliance of section 194Q:- As per section 40a (ia) of Income Tax Act 1961, if the Buyer fails to deduct TDS, 30% of the expenditure will be disallowed.

Example – Mr. XYZ purchases goods worth Rs 1 Crore from a seller, TDS will be deducted @ 0.10% on Rs. 50 Lacs i.e. Rs 5000; if not deducted, huge disallowance from expense of Rs 15, 00,000/- (30% of Rs. 50 Lakhs) will have to be borne by XYZ. 

Cases when TDS is not deductible:-

1. If TDS is deductible under any other provision on the same transaction or
2. TCS is collectible under section 206C (Sale of Scrap) [excluding 206C (1H), i.e. TCS on Sale of Goods)] i.e. even if the seller collects TCS u/s 206C (1H), the buyer is liable to deduct TDS u/s 194Q, if eligible.

Where a transaction is covered by both the provisions – TDS under Section 194Q and TCS under Section 206C (1H), who shall be liable for deduction/collection of tax?

Please recall section 206C (1H) introduced w.e.f. 01.10.2020, where seller is required to collect TCS @ .1% on payments received from each resident buyer (without Pan 1%), provided the turnover of the seller is more than Rs. 10.0 Crores in the preceding financial year. Although both section 194Q & 206C (1H) have common taxability, TDS will have precedence over TCS in transactions of sale/purchase of goods as per following provisions –   

 Second Proviso to Section 206C (1H) provides that if the buyer is liable to deduct tax under any other provision on the goods purchased by him from the seller and has deducted such amount, no tax shall be collected on the same transaction. Section 194Q (5) provides that no tax is required to be deducted by a person under this provision if tax is deductible under any other provision or tax is collectable under 

(continued)

section 206C [other than a transaction on which tax is collectable under Section 206C(1H)].

Though Section 206C(1H) excludes a transaction on which tax is actually deducted under any other provision (which will cover Section 194Q as well), but Section 194Q(5) does not create a similar exception for a transaction on which tax is collectible under Section 206C(1H). Thus, the buyer shall have the primary and foremost obligation to deduct the tax and no tax shall be collected on such transaction under Section 206C(1H). However, if the buyer makes a default, the liability to collect the tax gets shifted to the seller.

Examples 1 – Turnover of buyer in preceding financial year was more than Rs. 10.0 Crores, turnover of seller was also more than Rs. 10.0 Crores, and transaction of sale/purchase of the goods between the two exceeds Rs. 50.0 lakhs – Buyer will deduct TDS, Seller will not collect TCS

Examples 2 – Turnover of buyer in preceding financial year was Rs. 9.0 Crores, turnover of seller was more than Rs. 10.0 Crores, and transaction of sale/purchase of the goods between the two exceeds Rs. 50.0 lakhs – Buyer will not deduct TDS, Seller will collect TCS

Examples 3 – Turnover of buyer in preceding financial year was less than Rs. 10.0 Crores, turnover of seller was also less Rs. 10.0 Crores, and transaction of sale/purchase of the goods between the two exceeds Rs. 50.0 lakhs – No TDS or TCS will be applicable

From which date the threshold limit of Rs. 50 lakhs will be computed?

The threshold of Rs. 50 lakhs shall be computed from 01-04-2021. Thus, if a buyer has already purchased goods of value Rs. 50 lakhs or more up to 30-06-2021 from a seller, TDS under this provision shall apply on all purchases on or after 01-07-2021.

Whether TDS is to be deducted on the total invoice value including the GST?

Till, there is a clarification from CBDT, it is advisable to deduct TDS on the total invoice amount including GST, to avoid non – compliance.

Hope you will find this article useful!

Team Taxation

Circular No.05/60/2020-21 

Date: 06th June 2021 

To 

All the Managing Committee Members

All Affiliated Associations and Former Presidents of FPTA.

NOTICE – 3rd MEETING OF THE MANAGING COMMITTEE 2020-21

Notice is hereby given that the 3rd Meeting of the Managing Committee (2020-21) of the Federation of Paper Traders’ Associations of India will be hosted by to be held on 27th June 2021 through virtual (Online).

The details of venue, date and timing are as under:

Venue : VIRTUAL MEETING (ONLINE)

Date : 27th June 2021 at 10.00 a.m. to 2.00 p.m.

Timings : As per tentative programme attached.

AGENDA

The following items will form the agenda for the meeting.

1. To confirm the minutes of the 2nd Meeting of the Managing Committee (2020-21) held online on 18th April 2021.
2. To consider applications for the membership as Life Associate, Patron and Ordinary Member, if any.
3. To discussion on hosting the 60th AGM and Conference.
4. To discuss the current situation in the paper trade. Every representative association to appoint not more

than one Speakers to represent and voice their suggestions and recommendations. (Speakers will be

allotted maximum 3 Minutes).

1. To review the outstanding subscription and other arrears of Members.
2. To review on Paper Traders Telephone Directory. 
3. Report of Shri. A. Natesan Convener of Advisory Board.
4. Reports of the Vice-Presidents and Conveners of the various sub-committees in brief (3 Minutes)
5. Any other matter with the permission of the chair

Yours faithfully,

For Federation of the Paper Traders’ Associations of India,

Hiren Karia

Hon Secretary

To

All members of the Managing Committee. F.P. T. A

Dear Sirs,

Re: Draft Minutes of the Second Meeting of the Managing Committee (2020-21) held online on 18^th April 2021

We are enclosing draft minutes of the 2^nd Meeting of the Managing Committee (2020-21) for your kind perusal and comments if any.

The Managing Committee members may please send their comments on the abovementioned draft minutes to the FPTA secretariat within 15 days. In case we do not receive any response, we will presume that they have no comments to offer and the draft will be taken up for confirmation at the next meeting of the Managing Committee.

Yours faithfully,

For the Federation of Paper Trader’s Associations of India,

Hiren Karia

Hon. Secretary

Encl. As above. 

The second meeting of the Federation of Paper Traders’ Associations of India for the year 2020-21 was held Online (Zoom), on 18th April 2021 hosted by FPTA Secretariat, Mumbai. 

FPTA President, Shri Chandra Dev Chaudhary welcomed the members present and requested Hon. Secretary to proceed with the agenda of the meeting. 

Business Session

Business Session of the meeting was commenced at 10.00 a.m. A list of members who attended the meeting is given in Annexure. 

1. To confirm the draft minutes of the 4th meeting of the managing committee (2019-20) held on 27th September 2020 online.

Minutes were passed unanimously 

Proposed by: Shri Dalip Bindal, Delhi

Seconded by: Shri Sushil Agarwal, Nagpur 

1a. To confirm the draft minutes of the first meeting of the present Managing Committee (2020-21) held on 27th September 2020 online. 

Minutes were passed unanimously 

Proposed by: Shri Ramesh Salecha, Bengaluru

Seconded by: Shri Ravi Rathi, Hyderabad

2. To consider applications for membership for Life Associate, Patron and Ordinary Member, if any.Application was received for Patron Membership from M/s. Balaji Papers, Delhi as in order. 

The house passed the Patron Membership application. 

3. To review the outstanding subscription and other arrears of Members.Executive Secretary informed that the dues are pending towards Annual Subscriptions Special Subscription of following Affiliated Associations. 

Annual Subscription (2020-21) 

CPTA Kolkata, AVKM Agra, OPDA Cuttack, RPMA Jaipur, MPTA Madurai, MPVS Meerut, PMA Surat, TDKVNS Trichy, RPTA Raigarh, CPTA Raipur, LPMA Lucknow, EDPSMA Erode and DDPMWA Dindigul.

Special Subscription: 

CPTA Kolkata, MPMA Chennai, PMA Delhi, PMA Ahmedabad, KPMSA Bengaluru, WBPTA Howrah, TPMA Secunderabad, AVKM Agra, BPTA Vadodara, OPDA Cuttack, DPMA Dehradun, EDPSMA Erode, MPDA Jabalpur, RPMA Jaipur, KPMA Kanpur, LPMA Lucknow, MPTA Madurai, MPVS Meerut, PTA Nagpur, BPMA, Patna, RPTA Raigarh, CPTA Raipur, SPMA, Sivakasi, PMA Surat, SPATA Salem, TDKVNS Trichy, KKVS Varanasi, and DDPMWA Dindigul. Hon. Secretary requested to clear the outstanding by way of RTGS/NEFT at the earliest possible & requested Vice Presidents of their jurisdiction to follow up the matter.

4. To decide and finalise on our All-India Paper Traders Telephone Directory.

Shri. Rajen Aythora informed the house that he has circulated hard copies of the members list with the required details to all the Affiliated Associations. Only 6 associations have responded so far. It was decided that all the associations approve the member list and return it to the secretariat with additions/deletion if any. This should be done by the 31st of May and sent to secretariat along with contribution of Rs 50,000/= minimum. The Vice President of their jurisdiction are requested to follow up the matter. 

Mumbai and Coimbatore Associations Contribution by way of advertisement tariff was reconfirmed.

the tariff for full-page shall be Rs. 50,000/- and for half page Rs. 25,000/-. Advertisements received for directory will also be shown for the 6 months period in FPTA App without any additional cost as suggested by Shri. Nirmal Kuhad Convener, Website and Social Media Committee & approved by the house. 

5. Report of Shri A. Natesan Convener of Advisory Board.

Organizing 3rd Meeting of Managing Committee and Annual General Meeting, Arbitration, Members Telephone Directory was discussed.

Paper Day Awareness and Celebrations: All associations are to organize various programs to Create Awareness on Paper is Bio degradable and recyclable. They can conduct programs as was being done in previous years. Similar to last year it was suggested to conduct Essay Competitions on:

A). Our role to spread awareness to the general public on pre cautions to control the spread of Covid 19 and to adopt healthy life style.

B). To give suggestions for segregation and collection of paper waste for recycling as is being done in developed countries. To achieve 70% collection similar to developed countries.

C). Certificates to be given to all participants and prizes to the top 3 winners.

D). As part of the celebrations, we can approach Indian News Paper Society who are politically connected to release Paper ads on Paper awareness. This activity to be coordinated by Mr Mahesh Khandelwal, Nagpur, Mr Shamji Karia Mumbai and Mr Raj Kumar Bindal Delhi. Any other member interested may also contribute. Shri. T. Kishan Singh Convener of Committee also consultation with Shri. B. R. Rao Convener of Industry Committee will try to do approach industry for the same. 

During previous year the Awards were not given since most of the year was under lockdown and not much activity could be done. This year as per normal practice the Awards would be given. Nominations shall be called for; Judges shall be nominated and nominations scrutinized and results declared.

Regarding the MSME Mr Satya Pal Guptaji, Past President had sent a detailed article on the role of an Indian Trader giving valuable information on the employment and revenue contribution by the trade. Moreover, traders ensure the movement of raw materials and finished goods to every nook and corner of the country.

Mr Raj Kumar Bindal and Mr C. Balasubramanian holding key responsibilities in CAIT, to continue their efforts for the government to include trade under MSME. Members also requested our president Mr Chandra Dev Chaudhary to involve himself by joining with Mr Raj Kumar Bindal to meet the president of CAIT and put across our views. He shall give the feedback in the next M C meeting.

Matters related to G S T, H S N codes etc. are timely shared by Shri. Alok Kumar Gupta Committee of Taxation.

6. Discussion on rules governing arbitration by FPTA.

Shri C. Balasubramanian Convener of Committee for Consumer Relation and Arbitration informed house that after many brainstorming sessions he finally circulated a draft on “Rules Governing Arbitration of FPTA” to the Affiliated Associations copy marked to Managing Committee Members and Past Presidents for their views/suggestions, but till date no feedback has been received on the draft. FPTA has also sent a reminder of the same to all also in consultation with Mr. Venkat willing to organize an open house discussion. The concerned Advocate will answer to the doubts of our members, in these regards members are to send their questions in advance. The date is tentative subject to change depending on the response.

7. To present received reports of Vice-Presidents and Conveners of the Sub-committees.

Hon. Secretary informed that received reports have been already circulated to members 

8. Discussion about proposal received for 3rd Meeting of Managing Committee to be hosted by Sivakasi Paper Merchants’ Association, Sivakasi in June and also the 60th Annual General Meeting hosted by KPM&SA, Bengaluru in September 2021.Discussed on the proposal received by The Sivakasi Paper Merchants Association to Host the 3rd M C Meeting in Physical format, it was decided to go for virtual meeting looking at the current Pandemic situation. All members present thanked once again The Sivakasi Paper Merchants Association for coming forward to host the meeting. It was decided to conduct the 3rd M C Meeting on the 20th or 27th of June in Virtual format.

Discussion to hold 60th Annual General Meeting proposed to be hosted by the Karnataka Paper & Stationers Association, Bengaluru in the month of September 2021 physically if situation prevails at Bengaluru on 25th to 27th September 2021, final decision will be taken during virtual 3rd M C meeting.

9. To discuss the current situation in the paper trade. Every representative association to appoint not more than one Speakers to represent and voice their suggestions and recommendations. (Speakers will be allotted maximum 3 Minutes).

Current Market Scenario.

Members discussed current and future Paper Trade & Industry of local & international demand & supply, terms of business, working capital, credit and margin inventory, GST issues, TCS, HSN Code, etc., were discussed.  

10. Any other matter: Mr Chandra Dev Chaudhary, President took up the matter of refund to be received by the Drupa participants. In the absence of Mr Shekhar Chandak, Past President and Convenor of International Relations Mr Natesan briefed the house that the program was organized and confirmed on the face value of MT Bala Murugan, who had successfully organized FPTA’s several overseas programs. In this instance the participants had paid Rs 75,000/= each as advance. The program could not take place due to pandemic of Covid19 restrictions. Organizer Mr Bala was with a Sri Lanka based firm which went in lay-off due to business losses being in tourism industry. After tough negotiation only Rs 50,000/= per head was accepted to be refunded and the balance 25,000/= each participant to forego. Out of this the first instalment has been paid and the 2nd was agreed to be paid by June 2021. This was the best that could be done in the current scenario.
11. Vote of thanks and conclusion of the meeting. 

Since there was no other matter to be discussed, the meeting concluded with a vote of thanks by Shri. Arvind Sharma followed by the recital of National Anthem. 

Income Tax Due Dates Compiler 

Extension of time limits -Circular_No._9_of_2021-1-2

Report of Deepak Mittal on Market Condition during

2nd MC MEETING OF FPTA – 18.04.2021

1. The Market has played out the way I had thought.  Right from when I had called the Bottom in October – November at which time prices were ruling at 15 year lows & there was gloom and doom all across.
2. I had also said that the Rules of the game are changing….. the Paper Industry is no longer going to be the 3 – 5-year cycles, the cycles will be much shorter and we may see one up & one down cycle in the same year.  The reason for this being the demand supply gap has narrowed down not only in India but in the globe as well and also due to the China factor
3. I had also said that we are going to be in a new range as far as prices are concerne

Paper – 700 – 1000 USD / Ton

Pulp – 600 – 900 USD / Ton

We are at the upper end of the Range and going by the global market trend, the range may get extended on the upper side.  The pulp market is in a very very strong uptrend.

It has been relatively easier to predict the direction of the market up until now.  But now is the tricky situation with the 2nd wave hitting India in a big way, we may be in for a rough ride & may go through a small correction in prices & demand maybe for a couple of months (difficult to predict).  So, the big question is how could the market behave from hereon (just my guesswork with the available data…. always difficult to do a prediction).

Markets in India will be soft for the next 2 months.  

1. Prices of Uncoated Writing & Printing Paper may decline by 2 – 4 Rupees / Kg
2. Prices of Duplex Board as we speak have corrected by Rs.2 / Kg.
3. Coated Paper is steadily (no correction) but the rise has stopped temporarily
4. Demand will be hit as consumers will wait for clarity on opening up of the economy especially schools/colleges (Scholastic sector contributes to 60% of Writing & Printing demand).
5.  Huge de-stocking activity by Dealers will go on as prices correct (just like re-stocking – The reverse will play out).

But my feeling is this situation will not last beyond May (unless the 2nd wave of COVID goes out of control, then all bets are off), and also during this period, the prices will not correct much as this time

1. The Global Market is very strong both on-demand and on prices unlike earlier times
2. Pulp prices

Hard Wood – 800– 850 USD / Ton (This works out close to Rs.60 / Kg)

Soft Wood – 1100 – 1200 USD / Ton (even at these prices, there are no supplies)

Coated Paper – 1090 USD / Ton (This works out to Rs.88 / Kg)

Uncoated paper – 970 USD / Ton (This works out to Rs.72 – 73 / Kg)

Waste paper prices are very high supporting Virgin Grade prices

Shipping costs have not come down which is supporting prices

1.  Pulp Market and Cartel is very strong – there is no new Mill coming in next 1 year in Hard Wood and in Soft Wood no new Mill in next 2 years.
2. Pulp is also supported by high Recycled (45- 50 Duplex) Papers Prices and there is a huge migration happening from Recycled to Virgin varieties.
3. No longer Writing & Printing Paper Market influencing Pulp prices.  It is Tissue Paper (40% of Pulp demand & Writing & Printing – 25% – earlier it was reverse)
4. Chinese Market is extremely strong, they have moved from net Exporter of Paper to Net Importer of Paper.  Their demand is 120 Mn Tons / Annum and in year 2020, this demand grew by 8% which means 10 Mn Tons got added to their demand.  No new capacity has come.  So they are gobbling up any surplus capacity anywhere & exporting far less
5. So unlike March 2020, this time around if there is any demand dip local Mills will export their production to International Market may be at better prices than domestic market prices.
6. The Uncoated Hi-Brite Paper Market is 14.5 Lakh / Annum

Copier Paper is   9.5 Lakh / Annum

Coated Paper is   3.0 Lakh / Annum

  ————

27.0 Lakh

C/W is 20.0 Lakh

Even if there is a 10% demand destruction (which is huge) that means 5.0 Lakh Ton / Annum (Half Million), it will easily get absorbed in International markets where demand for Writing & Printing is close to 75 Million Tonnes / Annum

1. In India, in the last 2 – 3 years, no meaningful capacity has got added and the market has grown during this period resulting in increased capacity utilization for local Mills
2. India used to import W/F – 20000 Tonnes / Month

Copier Paper –     7000 Tonnes / Month

Recycled Mills using Pulp –     7000 Tonnes / Month

——————–

•        34000 Tonnes / Month

This has become Zero.  This itself will mean 16% growth for local mills (of A-Grade variety), add inventory buildup, extra export opportunity, etc., there is a 30 – 40% demand growth starting at A Grade Mills.

To cut a long story short, prices & demand are not going down too much.  Don’t become too bearish especially if you are dealing with uncoated & coated Papers of local mills.  Imported Uncoated for Overseas Mills will be difficult to penetrate, coated will still be fine

1. Globally Industrial Commodities are in a super cycle (no one knows for how long it will last) within that paper has performed very poorly if you take a 15-year period (till September, we were at 15-year lows)
2. I have a feeling that this time, the up-cycle will last for a longer period & prices are going to go higher and stay there & surprise everyone.
3. For new capacities to come, it will take 3 – 5 years minimum,  Companies have still not committed any fresh new investments
4. The Industry will have its best time ever & make extraordinary profits which will kick start new investments.

For us to Dealers to become and remain healthy, we need to do the same thing as I have said earlier.

1. Reset our margins
2. Reset our Terms of Business, credit, margin inventory (need to work on 30 days credit max.)
3. Our working capital will rise
4. Some consumers / Printers will get into trouble (Coated paper for example).  Be careful – close to 30% will be vulnerable as Coated paper demand has dropped by 35% in last one year.
5. Embrace rising paper price trend – it will be beneficial for us

Newsletter Apr 2021

REPORT OF ALOK KUMAR GUPTA-CONVENOR TAXATION COMMITTEE

Respected President sh. Chandra Dev Chaudhary, Secretary sh. Hiren Karia, all past Presidents, Vice presidents, Committee Convenor and fellow members:

Taxation is such a big name that it is a difficult task to finish its report in 3 minutes but our taxation committee report itself is so limited that we can finish it in 3 seconds. 

Now you’ll be wondering, how?

In today’s scenario of taxation, every day there is a change. We inform you of those changes in real-time. As a result, all the information is already accessible to you. This is how a report can easily be finished in 3 seconds. However, if we discuss the said changes one after the other, the report will take more than 3 hours. 

For the benefit of members, along with me, critical information is regularly posted by Honourable sh. C. Balasubramaniam sir, Mr. Hiren Karia ji, Nirmal Kuhad ji, Paharsingh Rajpurohit ji, Tapadia ji or Mr C Alagappen Ganesh ji, I thank all of them for helping me in discharging my duty.

Let us go through some major changes now. After our last M C meeting, the government presented the Union Budget and made about 177 changes to that Finance Act. 

Tough steps have been taken about tax evasion and according to them, our work has become very baffling.

Firstly, they introduced e-invoice, applicable to businesses with turnover above 500 crores. Then it was reduced to 100 crores. From April 1, 2021 this limit was further reduced to 50 crores and it is expected that from July 1st it will be applicable to 5 crores turnover or from the beginning for all B2B transactions. For E-invoice, the dealer has to generate a QR code and an IRN no. Dealers are harassed in terms of time invested for invoicing as GST servers are not capable of handling this much load.

A four-digit and six-digit HSN code are now mandatory for invoicing. 4-digit HSN for turnover up to 5 crores and 6-digit HSN for turnover higher than that. There are many HSN codes that bear the same item name thus creating a huge confusion. Even the GST portal in some cases does not support the 6-digit HSN code. Eway bill applicability should be removed after generating e-invoicing. Why duplication of work and undue load on Govt. server.

Further, they have imposed many restrictions on ITC. Now ITC credit can be availed only for those invoices which are reflected in GSTR 2B. For businesses, under QRMP scheme, dealer faced a different problem. The IFF option provided is not fully functional as of now. The people who filled the IFF of January and February 2021 are unable to populate the data in March. In response to this, the government is suggesting to fill it again and it will be fixed it further as work on-site is going on.

Even if dealer who has opted QRMP scheme and deposit his monthly tax under the head (reason for challan) of any other payment instead of QRMP, he can’t adjust his tax in March return, however shown in his ledger. You have to opt in April 21 for monthly option then only you can use your credit of January and February’s paid tax.

Previously, in ITC, we had an availment of 20%. This meant that we can claim additional 20% of our purchase invoices which are not appearing on the Government portal in 2A. Then they reduced it to 10% first, then reduced it to 5%, change it from 2A to 2B, which is blocked on 13th of every month. This means if the supplier filled his GSTR1 after the 11th day of the month, we have to claim it in the next month. 

Where did the seamless credit futures go?

Why are we not being given the ITC for our purchase or WHY we pay the costs of our supplier’s mistakes? If our suppliers do not file his return, we are not allowed to avail of the ITC, WHY? If our supplier does not pay the tax, we will not get the ITC, WHY? If any mistake is done by our supplier or his supplier, then it is also being recovered from us, WHY? 

You have given him registration, overall, he is your baby, WHY you penalise others your baby’s mistakes.

More problems are being created for new registrations, especially if you have applied multiple registrations on one PAN. Dealers are harassed to the core. Most applications are being rejected. Often, they are sent for physical verification. Despite this, mostly new registration is not being given. Because it is all happening faceless nowadays or through a centralized server, you cannot complain to any one or meet any officer.  What is wrong with our application and how can we overcome it? No one is answerable while you just got an online reply ‘REJECTED’.

Just few days back, the Honourable Supreme court commented that GST is a DRACONIAN law. It needs to be restructured.  What else is required, are GOD come to tell him for restructuring.

Coming to Income Tax now.

The TCS, which was applicable on the receipt of the payments (under specific conditions of turnover and receipts) in the income tax has been implemented on the purchase from 1 July 2021. We will be involved in the problem of TDS and TCS every month. Collecting them and filing quarterly returns to the government is a hassle.  To fulfil our new tasks, the government is increasing our burden a lot. The small businessman does not have such a trained accountant nor does our country has a good system of internet and electricity. All these compliances are not possible without them.

The funniest provision in TDS is, we have to deduct it at a specific rate but if the deductee had not filled his ITR for the last 2 years, you have to deduct it at higher rates as specified in law. Now you have to track the ITR of the person whose tax has to be deducted. HOW? God knows.

Recently, the Finance Ministry ordered a reduction in interest rates on post office saving schemes and the same was retracted the next day. Whereas, if a businessman has to rectify his mistake, has to maintain long audit trails (however this law is deferred for one year). As a matter of fact, he’s allowed to make a mistake, because no one is perfect. To err is human……. 

Thus, many laws are troubling us every day, in this context, I would like to say that our association or other associations together should give a memorandum to the government, in which request should be made to reduce the Compliance burden of the dealers. The government believes that the businessman is a thief but he is getting 125000 crores monthly revenue from the same thief. If he is a thief, then he should catch him but do not make false accusations.

In the end, I would like to thank the house for listening to me patiently and I’ll glad to furnish any query.

Hi Nirmal Kuhad,

Thank you for registering for “FPTA 2nd MEETING OF THE MANAGING COMMITTEE 2020-21”.

Please submit any questions to: [email protected]

Date Time: Apr 18, 2021 10:00 AM India

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Season’s Greetings.

I was renominated as the Convener, Industry Affairs Committee of FPTA for the year 2020-21 in the 1st Managing Committee Meeting held virtually on 27-9-2020. 

To guide and support me in my activities, the following team which was for the year 2019-20 was continued for this year 2020-21.

1. Shri Krishnendu Bhattacharjee, Kolkata – ADVISOR
2. Shri Ravi Kumar Rathi, Hyderabad — CO-CONVENER
3. Shri Padam Chand Jain, Delhi – MEMBER
4. Shri Deepak Mittal, Bangalore – MEMBER (SPECIAL INVITEE)

A webinar was conducted on 18th October, 2020 at 11 am on the following subjects:

1.How soon the demand for paper will come back and by what % there will be permanent demand destruction in W&P and coated papers.

2.New Applications of Paper to improve consumption and demand for paper in India.

3.How paper markets have changed from April 2020 till October 2020.

The following SENIOR MARKETING EXECUTIVES from JK PAPER MILLS were invited for the webinar to share their knowledge and experiences with our members.

1. Shri Partha Biswas – Chief M&S
2. Shri Saikat Basu – Chief General Manager Sales
3. Shri Santhosh Wakhloo – Vice President (Product Development)

It was a grand success and our members got benefitted from the webinar.

I have been regularly attending all the monthly virtual meetings/con calls of the FPTA. I was active on the FPTA what’s up group informing my opinions on various issues. I am in regular touch with President Shri Chandra Dev Chaudhary, Hon Secretary Shri Hiren Karia, and FPTA Secretariat.

Wishing all the Paper Traders a Happy and Healthy Financial Year 2020-21

B.R.RAO

CONVENER – INDUSTRY AFFAIRS.

Hi Nirmal Kuhad,

Thank you for registering for “FPTA 2nd MEETING OF THE MANAGING COMMITTEE 2020-21”.

Please submit any questions to: [email protected]

Date Time: Apr 18, 2021 10:00 AM India

Join from PC, Mac, Linux, iOS or Android: Click Here to Join
Passcode: fpta180421
Note: This link should not be shared with others; it is unique to you.
Add to Calendar Add to Google Calendar   Add to Yahoo Calendar


Or One tap mobile
    US: +16468769923,,98832900735# or +16699006833,,98832900735#
Or Telephone:
    Dial(for higher quality, dial a number based on your current location):
        US: +1 646 876 9923 or +1 669 900 6833 or +1 253 215 8782 or +1 301 715 8592 or +1 312 626 6799 or +1 346 248 7799 or +1 408 638 0968
    Meeting ID: 988 3290 0735
    Passcode: 0414436959
    International numbers available: https://zoom.us/u/aoT9F3D4V

RULES GOVERNING ARBITRATION OF FEDERATION OF PAPER TRADERSASSOCIATIONS OF INDIA COIMBATORE

Ref No: 001/FPTA/2021-22 15.4.2021

The Report of the Consumer Relations and Arbitration Committee presented to the 2nd managing committee (2020-21) of FPTA to be held virtually on 18.04.21

It gives me immense pleasure to present before you the report of the Consumer Relations and Arbitration Committee of FPTA.

I was renominated as the convener of Consumer Relations and Arbitration Committee of FPTA for the year 2020-21 in the first meeting of the Managing Committee of FPTA held virtually on 27th September 2020. In this connection I received a letter from the FPTA secretariat, 04/60/2021 dated 27.9.20 on my renomination as convenor for the year 2020. The following members Mr. Priyesh Desai, Mumbai,Mr. A. Muthuraman , Chennai,Mr. Subash Saha , Kolkata, Mr. Parmod Jain, Delhi,Ranjeet Jain, Bangalore,Mr. Vishnu Kant Rathi, Secunderabad.,Mr. Vikram Bajanka, Patna and Mr. Saravana Kumar, Salem were renominated for the term 2020-21.

Then vide my letter 002-009 dated 1.10.2020 I communicated to all the members about their renomination and requested them to coordinate with their Jurisdiction associations which I communicated to them. The members were to organize Consumer Meet and Awareness Programs on Arbitration in the respective association.

To frame the guidelines to be adopted for Arbitration , I contacted a senior advocate Mr.P.Nanda Kumar B.A.,B.L., former President , Bar Association Coimbatore and Chairman , Joint Action Committee of TamilNadu Advocates Association. I gave inputs received from Chennai, Delhi, Bangalore, Pune and Telengana associations regarding their arbitration procedure. After many brainstorming sessions with him he finally gave me a draft on “Rules Governing Arbitration of FPTA”. I have forwarded the same to FPTA, FPTA President, FPTA Secretary, Presidents of all affiliated associations of FPTA, Members of FPTA Arbitration committee, Mr.Venkat and Mr.Prasanna, advocate Chennai on 29.10.2020.

Till date I have not received any feedback on the draft. FPTA has sent a reminder on April 3rd regarding the same to all.

Further due to corona virus issue no physical meetings could be organized in the association level both on Consumer side and Arbitration. Hope the situation will improve and will organize the meetings in future. I request you all to consider the draft already sent and give your views on the rules governing arbitration of FPTA.

I thank our FPTA President Shri.Chandara Dev Chaudhary , Hony.Secy. Shri.Hiren Karia, Members of my committee and all the members of FPTA for their continuous support in discharging our duties of the committee.

With warm Regards.

C.Balasubramnian.

Convener-Cons.Relations and Arbitration Committee                                                            Federation of Paper Traders Association of India.        

To

All the Managing Committee Members

All Affiliated Associations and Former Presidents of FPTA.

NOTICE – 2^nd MEETING OF THE MANAGING COMMITTEE 2020-21

Notice is hereby given that the 2^nd Meeting of the Managing Committee (2020-21) of the Federation of Paper Traders’ Associations of India will be held on 18^th April 2021 from 10.00 a.m. to 2.00 p.m. through Zoom (Online).

The agenda and link will be shared in due course.

Regards,

For FPTA

Hiren Karia

Hon. Secretary