Circulars And Reports

To

All the Managing Committee Members

All Affiliated Associations and Former Presidents of FPTA.

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

Notice is hereby given that the 2nd Meeting of the Managing Committee (2020-21) of the Federation of Paper Traders’ Associations of India will be held on 18th 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

To, All Affiliated Associations
      Managing Committee Members
 
Dear Members,
 
As discussed during the Annual General Meeting of preparing a draft on FPTA’s Governing Rules of Arbitration.
 
It will be discussed during the 2nd Meeting of the Managing Committee to be held on 18th April 2021.
 
We request you to review and consider it.
 
Regards,
For FPTA
Hiren Karia
Hon. Secretary
Cc. All Past Presidents   
 
 
Respected Members,
 

Please find attached herewith the 

Report (202021) of 

Shri. C. Balasubramanian Convener Consumer Relations and Arbitration Committee for your information and necessary action.

Regards,
 
For FPTA
Hiren Karia
Hon. Secretary

 

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.        

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.
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Or One tap mobile
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Or Telephone:
    Dial(for higher quality, dial a number based on your current location):
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    Meeting ID: 988 3290 0735
    Passcode: 0414436959
    International numbers available: https://zoom.us/u/aoT9F3D4V

Respected Members,
 

Please find attached here with the 

Report (202021) of 

Shri. B R Rao,

Convener Industry Affairs Committe for your information and necessary action.

Regards,
For FPTA
Hiren Karia
Hon. Secretary

 

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

Respected Members,  
 

Please find attached here with the 

 
Report (2020-21) of Shri. Alok Gupta Convener Taxation Committee for your information and necessary action.
 
Regards,
 
For FPTA
Hiren Karia
Hon. Secretary
 

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.

Respected Members,
 

Please find attached here with the 

Report  of 
 

Shri. Shiv Kumar Rungta,

Vice President Raipur 

for your information and necessary action.

Regards,
 
For FPTA
Hiren Karia
Hon. Secretary

 

Respected Members
 
Please find attached here with the circular on Taxation for your information.
  • Income Tax 
  • GST 
  • Fema 
  • International Taxation
  • Company Law
Regards
For FPTA
Hiren Karia
Hon. Secretary
 

Newsletter Apr 2021

 

Respected Members,
 
Please find attached herewith the Report of Market Conditions presented by Shri. Deepak Mittal for your information.
 
Regards,
For Hiren Karia
Hon. Secretary

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
Respected Sir,
 
Please find below the IPPTA Webinar for your reference.
 
Regards
For FPTA
Hiren Karia
Hon. Secretary
 

Dear Members
 
In  view  of  the  adverse circumstances arising due to the severe Covid-19 pandemic, CBDT extends timelines of certain compliances, to mitigate the difficulties faced by taxpayers.
 
Please find CBDT Circular No.9/2021 in F. No. 225/49/2021-ITA-II dated 20.05.2021 is for your information.
 
Regards
For FPTA
Hiren Karia
Hon. Secretary
 

Income Tax Due Dates Compiler 

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

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 18th April 2021

We are enclosing draft minutes of the 2nd 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

  1. 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. 

  1. 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.

  1. 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. 

  1. 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.

  1. 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.

  1. 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 

  1. 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.

  1. 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.  

  1. 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.
  2. 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. 

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

Dear Members,
 
Please find attached herewith the important information on Taxations for your perusal.
 
a. The recent amendments of Income Tax in TDS/TCS applicable from 01/072021
 
b. Income Tax Notification F.No.225/61/2021/ITA-II dated 10/06/2021 : Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2021- 22 – conduct of assessment proceedings in such cases.
 
Regards,
For FPTA
Hiren Karia
Hon. Secretary
 
  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.

  1. 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:

S No

The Parameter

Assessment Proceedings to be conducted by

1

Cases pertaining to survey u/s 133A of the income-tax Act, 1961(Act)

 

Cases pertaining to Survey under section 133A of the Act subject to exclusion below:

Exclusion:

Cases where books of accounts, documents, etc. were not impounded and returned income (excluding any disclosure made during the Survey) is not less than returned income of preceding assessment year are not required to be considered for compulsory scrutiny.

However, the said exclusion is not applicable where assessee has retracted from disclosure made during the Survey and such cases have to be considered for compulsory scrutiny.

(i) After the issue of notice u/s 143(2) of the Act by the Jurisdictional Assessing Officer for compulsory selection, cases selected for compulsory scrutiny which have impounded material, shall have to be transferred to Central Charges u/s 127 of the Act within 15 days of issue of notice u/s 143(2) of the Act.

(ii) After the issue of notice u/s 143(2) of the Act by the Jurisdictional Assessing Officer for compulsory selection, assessment proceedings in respect of cases selected for compulsory scrutiny and where there is no impounded material will be conducted by National Faceless Assessment Centre (NaFAC). The Assessing Officer shall upload the Survey Report in the ITBA at the time of issue of notice u/s 143(2) of the Act.

2

Cases pertaining to Search and Seizure

 

Assessments in Search and Seizure cases to be made under section(s) 153A, 153C read with section 143(3) of the Act and also for return filed for assessment year relevant to previous year in which the Search was conducted under section 132 or requisition was made under section 132A of the Act.

The case‘s falling u/s 153C, if lying outside Central Charges, the Jurisdictional Assessing Officer is required to issue notice u/s 143(2) in cases where return is furnished u/s 153C or 142(1) calling for information in cases where no return is furnished u/s 153C. Such cases shall be transferred to Central Charges u/s 127 of the Act within 15 days of issue of notice u/s 143(2)/142(1) of the Act.

3

Cases in which notices u/s 142(1) of the Act, calling for return, have been issued

 

(i) Cases where no return has been furnished in response to a notice u/s 142(1) of the Act.

These cases will be taken up for compulsory scrutiny by NaFAC.

 

(ii) Cases where return has been furnished in response to notice u/s 142(1) of the Act and where notice u/s 142(1) of the Act was issued due to the information contained in NMS Cycle/AIR information/information received from Directorate of I&Cl.

These cases will not be taken up for compulsory scrutiny and the selection of such cases for scrutiny will be through CASS cycle.

 

(iii) Cases where return has been furnished in response to notice u/s 142(1) of the Act and where notice u/s 142(1) of the Act was issued due to the specific information received from Law Enforcement Agencies, including the Investigation Wing; lntelligence/Regulatory Authority/Agency; Audit Objection; etc.

After the issue of notice u/s 143(2) of the Act by the Jurisdictional Assessing Officer for compulsory selection, assessment proceedings in such cases will be conducted by NaFAC.

4

Cases in which notices u/s 148 of the Act have been issued

 

(i) Cases where no return has been furnished in response to notice u/s 148 of the Act.

In such cases, Jurisdictional Assessing shall issue notice u/s 142(1) of the Act, calling for information regarding the issues on the basis of which notice u/s 148 was issued, subsequent to which, assessment proceedings in such cases will be conducted by NaFAC.

 

(ii) Cases where return is furnished in response to notice u/s 148 of the Act

After the issue of notice u/s 143(2) of the Act by the Jurisdictional Assessing Officer for compulsory selection, assessment proceedings in such cases will be conducted by NaFAC.

5

Cases related to registration/approval under various sections of the Act, such as 12A, 35(1)(ii)/(iia)/(iii), 10(23C), etc.

 

Cases where registration/approval under various sections of the Act, such as section 12A, 35(1)(ii)/(iia)/(iii), 10(23C), etc. have not been granted or have been cancelled/ withdrawn by the Competent Authority, yet the assessee has been found to be claiming tax-exemption/ deduction in the return. However, where such orders of withdrawal of registration/approval have been reversed/set-aside in appellate proceedings, those cases will not be selected under this clause.

After the issue of notice u/s 143(2) of the Act by the Jurisdictional Assessing Officer for compulsory selection, assessment proceedings in such cases will be conducted by NaFAC.

  1. 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.
  2. 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.
  3. 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)

Dear Members,
 
Please find attached herewith the important information on Taxations for your perusal.
a. The recent amendments of Income Tax in TDS/TCS applicable from 01/072021
b. Income Tax Notification F.No.225/61/2021/ITA-II dated 10/06/2021 : Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2021- 22 – conduct of assessment proceedings in such cases.
 
Regards,
For FPTA
Hiren Karia
Hon. Secretary

June 16, 2021

TDS & TCS AT HIGHER RATES – NON FILERS OF ITR – SECTION 206AB & 206CCA

Insertion of new sections

The Finance Bill, 2021 inserts two new sections 206AB and 206CCA in the Income Tax Act, 1961 (‘Act’) as special provisions providing for higher rate for TDS and TCS respectively, for the non-filers of income-tax return.

Specified Person (Non-Filer)

A specified person is a person:

  • who has not filed the returns of income for both of the immediately preceding two years relevant to the year in which tax is required to be deducted or collected, as the case may be and due date prescribed under Section 139(1) to file such return has expired.
  • whose aggregate of tax deducted at source and tax collected at source in his case is INR 50,000 or more in each of these immediately preceding two years.

However, a specified person shall not include a non-resident who does not have a permanent establishment in India.

Type of payments covered

The newly proposed sections would apply on any sum, income, or amount paid or payable or credited, by a person to a specified person.

Section 206AB shall not apply where the tax is required to be deducted under the following sections of the Act:

192

:

TDS on salary

192A

:

TDS on payment towards accumulated balance due to an employee participating in a recognized provident fund (‘PF’)

194B

:

TDS on income from lottery or crossword puzzle.

194BB

:

TDS on income from horse races

194LBC

:

TDS on income in respect of investment in securitization trust

194N

:

TDS on cash withdrawal in excess of INR 20 Lakhs

 Higher Rates

The rate of TDS for such specified persons shall be higher of:

  • Twice the rate specified in the Act;
  • Twice the rates in force;
  • Rate of 5%

The rate of TCS for specified persons shall be higher of:

  • Twice the rate specified in the Act
  • Rate of 5%

Parallel sections in the Act

Section 206AA and 206CC of the Act are similar sections which provide for higher rates of TDS and TCS in case the deductee does not furnish Permanent Account Number (‘PAN’).

In view of the same, if this specified person additionally does not have a PAN, the TDS or TCS shall be higher of the rates prescribed in these parallel sections or stated above as per the new proposed sections. TDS rate for non-furnishing of Pan will be the higher of the rate specified in the relevant section or rate in force or 20%. TCS rate will be higher of twice the specified rate or 5%.  

Applicability

This amendment will take effect from 1st July, 2021.

Suggestion

It is advisable to take a declaration in each financial year whose TDS is to be deducted as well as scrap buyer whose TCS is to be collected, to determine the rate of TDS/TCS based on the conditions applicable to the specified persons as mentioned above.

In our trade we need to take the declaration from suppliers, labour contractors, job workers, transporters, landlords, commission receivers, lenders, scrap buyers, if we are required to deduct/collect TDS or TCS from them.

Please find attached a draft Declaration form format.

TEAM TAXATION

Dear Members,
 
Please find attached herewith the important information on Taxations for your perusal.
a. The recent amendments of Income Tax in TDS/TCS applicable from 01/072021
b. Income Tax Notification F.No.225/61/2021/ITA-II dated 10/06/2021 : Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2021- 22 – conduct of assessment proceedings in such cases.
 
Regards,
For FPTA
Hiren Karia
Hon. Secretary
 

XYZ Paper Co.
Address
Address
City – Pin Code

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

Trade Name

 

Trade PAN No.

 

 

Status of Income Tax Returns

Answer in Yes/No

F.Y. 2018-19

 
  1. Filed

 
  1. Not Filed

 

If Answer yes to A

 

Acknowledgement Number

 

Acknowledgement Date

 

Aggregate of Tax Deducted and collected

at source

 

Less than 50,000/-

 

More than 50,000/-

 

F.Y. 2019-20

 
  1. Filed

 
  1. Not Filed

 

If Answer yes to A

 

Acknowledgement Number

 

Acknowledgement Date

 

Aggregate of Tax Deducted and collected

at source

 

Less than 50,000/-

 

More than 50,000/-

 

Authorised Signatory

Name

 

Designation

 

E Mail ID

 

Date

 

For ……………………………..

Name

Designation

Dear Members,
 
Please find attached herewith the important information on Taxations for your perusal.
a. The recent amendments of Income Tax in TDS/TCS applicable from 01/072021
b. Income Tax Notification F.No.225/61/2021/ITA-II dated 10/06/2021 : Guidelines for compulsory selection of returns for Complete Scrutiny during the Financial Year 2021- 22 – conduct of assessment proceedings in such cases.
 
Regards,
For FPTA
Hiren Karia
Hon. Secretary
 

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

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

Respected Members,
 
Please find attached herewith the Report of Shri. Paharsingh Rajpurohit, Vice President Vijayawadafor your information and necessary action.
 
Regards,
 
For FPTA
Hiren Karia
Hon. Secretary

REPORT OF VICE PRESIDENT 25-06-2021

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 quarter, 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 a pandemic situation in corona.

C. What are the views of the Associations be it on trade, the functioning of FPTA, Government policies, etc:  – 

In my regular interactions with members, I got noticed that many members are facing difficulties in GST rules changing day by day, and returns (no of returns to be file every month and annual returns every year) becoming complicated by the GST Act.

Some of the members of the affiliated association brought to the notice that the GST tax rate should be minimum as the customers are not feeling happy to pay 12% on paper

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 quarter: –

I attended the MC meeting at PMW Association on 04.03.2021 and we did water distribution on 14.03.2021.

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 always to improve more and more its status.

G. Any other suggestions: –

Advising that to make suggestions to the government in policymaking in Gst day to day becoming complicating the act.

 

Name and signature of Vice-President

(Paharsingh Rajpurohit)

Dear Members,
 
Please find attached herewith the Income Tax Circular No. 12 of 2021 dated 25/06/201: Extension of time limits of certain compliances to provide relief to taxpayers in view of the severe pandemic.
 
This is for your information.
 
Regards
For FPTA
Hiren Karia
Hon. Secretary
 
Respected Members,
 
Please find attached herewith the Report  of Shri. R. Ravi, Vice President Coimbatore for your information and necessary action.
 
Regards,
 
For FPTA
Hiren Karia
Hon. Secretary
 

VICE PRESIDEN‘S REPORT

dated:26/6/2021 (for 3rd MC)

Associations under my jurisdiction are

         Paper and Allied Merchants Association, Coimbatore

         Paper Traders Association, Kerala

         Dindigul District Paper Merchants Welfare Association

         Erode District Paper and Stationery Merchants Association

         The Sivakasi Paper Merchants Association

          Salem Paper and Allied Traders Association

 I have received the monthly reports only from our Paper And Allied Merchant Association. Coimbatore.

For all the months. They have conducted their Executive committee meeting in all the months regularly. I participated in all the meetings.

 They have made contributions to the TamilNadu Chief Minister Public relief fund and also to the chamber of commerce. “COVID 19 RELIEF FUND” For providing nurses and sanitation workers for GH, ESI Hospitals, and corporation health centres.

 Members and staff s working in members’ offices got their covid vaccinations done on 20th June 2021.by the efforts of the chamber of commerce.

 Tamil Nadu Government imposes a lockdown from 6/5/2021 and it regularly extended by a week after week up to 5th July 21.

 Other associations under my jurisdiction have not sent their monthly reports.

thanks, and regards

R. Ravi

Coimbatore

 

 

 

Respected Members,  
 
Please find attached herewith the Report (2020-21) of Shri. Alok Gupta Convener Taxation Committee for your information and necessary action.
 
Regards,
For FPTA
Hiren Karia
Hon. Secretary
 

Respected President sh. Chander Dev Chaudhry Ji, Respected Secretary sh. Hiren Karia ji, all Past Presidents, Vice Presidents, all Committee Convenors, all seniors, and my dear friends, 

As now we are in a world of digitization or social media, every news reaches you in real time, that is why what we should present in our taxation committee report is already shared with you.

But as a protocol I must present my report, for which I summarizes month wise points of major decision or announcement since last MC, or say since March 21, if any detailed information is required in any matter, we can discuss that:   

MARCH:

  • Supreme Court says- Cheque Bounce cases cannot be filed or continued against firms facing Insolvency and Bankruptcy proceedings.
  • Changes were made in table 12 format of GSTR 1 return w.e.f 01.04.2021 onwards, it become mandatory to report minimum 4-digit or 6 digit of HSN code based on aggregate turnover on PAN in the preceding FY
  • In Uttar Pradesh waiver in interest and penalties demand of VAT was announced, it is further extended if deposited up to 2nd September 2021
  • Govt. introduced a new option on the GST portal to select the nature of Business whether wholesaler/ retailer/ manufacturer or service provider.
  • Govt. clarify that GST no is not mandatory for MSME Udyam Registration
  • E invoice was applicable from threshold limit of 50 crores from 1st April 2021
  • Supreme Court orders that there shall be full waiver of interest on interest in Loan Moratorium case.
  • Govt. announced that we have to use a Mandatory accounting software from 1st April 21 for companies ensuring that the audit trail cannot be disabled, however it was deferred for next year.
  • In income Tax clause 30C and 44 of the Tax Audit report deferred till 31st March 2022.
  • In Rajasthan from 01.04.2021 no e-way bill is required within the state if the value of invoice does not exceed one lakh notified.

APRIL: 

  • Govt. deploy electronic facility at employer interface of EPFO’s unified portal for Principal Employers to view EPF compliances of their contractors & contract workers.
  • Maharashtra announces scheme for withdrawal of pending VAT assessments.
  • Govt. clarify that some 6-digit HSNs are showing invalid on GST portal while entering in e-waybill just because they did not exist.
  • The Supreme Court says that provisionally attachment of property and bank accounts of assesses is a draconian provision in GST. Even yesterday
  • Govt. extended various dates of compliance in GST and income Tax due to COVID, which were circulated from time to time.
  • Govt. allows companies to file GST returns without DSC with mobile OTP.
  • Madras High Court Orders that “no GST can be demanded from buyer for the fault of seller of non-payment of taxes to the Govt”.
  • SEBI extends submission of financial results from 30th May to 30th June.

MAY:

  • Govt. notified various extension of compliances earlier announced and reduced the IGST rate on certain COVID related products on import,
  • SIDBI announced a special scheme for MSMEs at a very low ROI.
  • RBI announced further relief for small businesses.  Such as restructuring of loans, video-based KYC etc.
  • Govt. has been notified to allow cash payment of over 2 lakhs for COVID patient’s treatment.
  • Due to COVID situation MCA provided Relaxation in certain compliances.
  • Rajasthan High Court says that: Cancellation of GST Registration for the reason of wrongful claim of ITC by a Dealer is like putting the cart before the Horse.
  • Due to lockdown 7.34 lakh GST registration were surrendered in one year, while 16 lakh registrations were cancelled.
  • According to the Orissa High Court: “Simultaneous investigation by Central and State Authorities for the same period is not allowed.
  • Govt. integrated e-way bill system with FAS Tag and RIFD to real time check.
  • Govt. notified changes in rules of refund under GST as per CBIC.
  • RTI shows Rs. 100 Crore late fee collected in GST during COVID pandemic.
  • Govt. thinks to allow private financial technology companies to set up more e invoice generation portals in view of unsatisfactory progress.

JUNE:

  • Govt. simplifies registration process for MSMEs
  • MCA allowed board meetings permanently through video conferencing.
  • Udyog Aadhaar Memorandum’s validity extended till 31st December 21 from 31st March 21.
  • In the end we all are very much worried about the new provision of TDS (in which tax must be deducted at higher rate from non- filers of return), Govt. deployed functionality under section 206AB and 206CCA of income tax on his Income Tax portal and also gave some relaxations in various compliance of Income tax just the day before yesterday only.

I will try to summarize all the major announcements and information related to taxation, please excuse me if anything is left. 

I would like to thank my whole team taxation for supporting me unconditionally to the best of their abilities.

I am available 24×7 for any taxation related query.

Thank you for patiently listening.

Dear Members,
 
Please find the report on market conditions presented by Shri. Deepak Mittal, Bengaluru during the 3rd Meeting of the Managing Committee.
 
This is for your information.
 
Regards
For FPTA
Hiren Karia
Hon. Secretary 
 

FPTA 3RD M.C. MEETING 27.06.2021

DEEPAK MITTAL’S REPORT ON MARKET CONDITIONS


Hi, Good Afternoon everyone

The 2nd lockdown has lingered on for longer than what was anticipated.  As in any lockdown, the worst impacted segment within the paper sector is the Writing & Printing Paper segment as School & Colleges are shut & the scholastic sector contributes a lion’s share of 60% to the demand of Writing & Printing Paper segment.

Prices in this segment have corrected 5 – 7 Rupees / Kg & are in the range of Rs.50 – 55/Kg NSR depending on the Mill / Market.

This time around paper prices have stabilized at a much higher level unlike last time :

2nd Wave – Rs.50,000 – 55,000 NSR PMT of A-Grade Uncoated Wood Free

1st Wave – Rs.43,000 – 46,000 NSR PMT of A Grade Uncoated Wood Free

Inventory levels at the time of 1st wave were very low and this time it is very high (especially with Dealers).

Inventory with A Grade Mills is approx. 1.5 Lakh Tons (which is not much).

What has happened in the last 2 months is

  1. a) Pulp prices have corrected by approx. USD 50 PMT
  2. b) Domestic demand is very low
  3. c) Imported Booking prices in Coated Paper / Board have corrected by USD 130 / 140 PMT (around Rs.10 / Kg)
  4. d) Chinese demand has come down as South China is in lockdown due to Covid 
  5. e) There is a clampdown by the Chinese Government on all Industrial Commodities like Tin, Steel, etc. – So sentimentally prices are a bit subdued.
  6. f) APP & APRIL have offered Uncoated Wood Free @ USD 700 PMT for Reels & USD 730 PMT for Sheets.  But allocation is small.  The reason being Port congestion, Container non-availability to the US & Europe.  Also, they don’t want to drop pulp prices.  Hence to make up for the temporary drop in demand, they are dropping paper prices.

So due to many reasons, the price & demand is subdued but as the Unlock Trade happens, demand will come roaring back.

Indications are that from August, things should start picking up notwithstanding a severe 3rd Wave.  Even internationally, it is expected that prices in China will bounce back from August.  It is a funny situation where pulp price is USD 750 – 800 PMT  & Uncoated Wood Free is USD 700 – 750 PMT.  This situation never lasts.

This situation never lasts.

If I have to summarize in short, the way I see it is there is going to be short term pain, medium & long term looks very bullish.

The demand in India has been very depressing in the last 15 months.  The Writing & Printing segment shrank 35% last year as against a normal growth of 5%.  Hence, we were 40% below our potential.  Globally, it was -16% as against -5% so the globe was at -11% below potential.  So we under-performed by a big margin.  The expectation is we will come back strongly this year and next.

We are at a Per Capita consumption of fewer than 4 Kg in the Writing & Printing segment which is very small and we can’t go lower (our total Per Capita consumption is 13 Kgs).

The State Government Tenders for Text Books are getting released one by one (Maharashtra & Karnataka etc.).  This will help boost sentiment, improve coverage of Mills & consequently raise prices.

I was talking to the Head of Marketing of a large Paper Mill.  He was indicating that prices will be up by Rs.5 – 7 / Kg by August (from Rs.53 – 60).  Thumb Rule is Pulp price + Rs.10/- = Wood Free Price that works out to approx. Rs.65 / Kg based on today’s pulp price availability.

The reasons for better prices going forward :

  1. a) Waste Paper prices are still high (White cutting – USD 550 PMT) and also available is not quite adequate
  2. b) Pulp not coming down meaningfully (due to a strong cartel)                                          
  3. c) Shipping cost not coming down at least for next 6 – 9 months
  4. d) No new capacities (not only in India but also globally). For the last 2 years, no new meaningful capacities had come up and China’s demand grew by 10 Million Tons in the last 12 – 18 months.  So surplus is gone.
  5. e) Imports of Uncoated Wood Free into India is almost NIL
  6. f) Decent Export price for domestic Mills
  7. g) Globally industrial commodities are in a super cycle (time for the paper to go in a new orbit).  
  8. h) Time for the quota regime to come back in 2022 (if schools & colleges open this year)
  9. i) The gap in coated & uncoated paper is almost Rs.20/Kg and this is not sustainable and most likely the Uncoated will grow upwards
  10. j) Copier demand will surge as school & colleges open up.

I am aware that distributors are saddled with stocks & when prices come down they suffer losses on their inventory.  

They have also gained on the way up & should be prepared to give up some gains, this is what happens in a ferocious market.

PACKAGING SEGMENT

  1. The size of the Indian Packaging segment is 10 – 11 Million Tons
      • Kraft Paper – 6 – 7 Million Tons
      • Duplex Board – 4 Million Tons (Virgin Pkg. – 1 Mn. & Recycled – 3 Mn. Tons)
  1. Unlike the Writing & Printing segment, Packaging is doing fine & growing at high single digits in last 1 year.
  2. The waste paper prices are at all-time high.  It had dipped for a short period and now it is back to its highs
  3. Ocean freight is not coming down & indications are for next 9 months or so, it may not come down.
  4. Exports are quite buoyant with China being a large buyer of recycled board and recovered pulp as In International markets due to ban of waste paper.
  5. Huge migration happening from Recycled to Virgin Packaging Board in China, India and also the Globe (the cost difference is only 3 – 5% more than the Recycled grades after accounting for GSM substitution).
  6. Due to migration, pulp demand has gone up by close to a Million Tons from the Virgin Packaging segment.  Also pulp demand has gone up as China has started behaving like a developed economy (anti-pollution norms).  Normally when a country moves like this, the share of Virgin Paper moves to 55 – 60% – China is at 35% currently.
  7. Demand is not a problem in this segment – getting waste paper is the biggest issue:
      • Collections have been poor
      • Local ONP circulation is down by 35 – 40%
      • Container Freight charges are not coming down
      • Export demand is very strong
  1. New capacity of Virgin Packaging Board of approx. 2.5 Lakh Tons will hit the market in the next 3 months.  It will get absorbed easily within 1 year.  10% organic growth (which will result in demand growth of approx. 1 Lakh tons.  White Back Market is approx. 5 Lakh Tons / Annum.  Migration from WB Market to Virgin Packaging is a great possibility even if 20% migrates to Virgin Packaging, there are 1 Lakh tons additional demand that will come up. Exports are strong (as all integrated capacities)
  2. With the world looking at China + 1 strategy, things are looking very promising for the Indian Packaging segment on a medium to long-term basis.
  3. Plastic substitution products especially in the food segment will create huge opportunities for the virgin packaging segment.
      • Globally India
      • Writing & Printing 19% 28%
      • Packaging 68 – 70% 55%

So the growth of the Packaging sector will be much faster than W & P in India but both will continue to grow.  Probably the only Market in World to have this

So my take is if we are willing to look beyond the next 3 – 6 months, the way I see it is it’s going to be very rosy for the industry as a whole and within that how we as traders capitalize the opportunity is up to us.

  1. We are at a Market size of 18.5 – 20 Million Tons in India which roughly works out to 4 – 4.5% of the world’s demand with 16% of world population having a market share of 4.5% is too low.
  2. China is at 28% of the world’s demand (120 – 130 Million Tons out of the global size of 425 Million Tons).  They are also at 16% of the world’s population & now they do not export much too.  So they are at 7 times India’s size.
  3. The world is looking at a China + 1 strategy where they want an alternate source to China, hitherto we were living in a bipolar world where China was the manufacturing hub for the world and the US was the consumption center.
  4. The education sector has a long way to go & demand from this segment is far from saturated.  If we divide India into 3 categories :
      • India 1 – 20 Million – The Uber rich
      • India 2 – 200 Million – Upper middle class & middle class
      • India 3 – 1 Billion people – Lower middle class & below poverty level.

The bottom of the pyramid is from where over the next 10 years you will see a lot of demand coming in from education sector and there will be a consistent demand growth for Paper and paper Board due to this over the next many years.

It will be a great time for us to reset a lot of our mistakes (margins, credits, etc.) & I am sticking my neck out to say that 2022 is when the Quota Regime will come back in the W & P segment.

Thank you,

DEEPAK MITTAL