Retailers want less red tape, industry status
Retailers want service tax on rents withdrawn, lesser number of licences and industry status for the sector from the Union budget.
By PTI |
MUMBAI: Retailers want service tax on rents withdrawn, lesser number of licences and clearances to set up stores, and industry status for the sector from the union budget.
"The service tax on rent is a major problem. We want that to go," J K Jain, Vice President Finance of Provogue (India) Ltd, which makes and retails men's clothing.
Separate guidelines were needed for retail infrastructure, which is now clubbed with real estate, forcing retailers to get more permits than required, Jain added.
"There needs to be a single window licence for retailers," said Pushpamitra Das, chief executive officer, Wadhawan Food Retail Pvt Ltd, which owns the Spinach retail chain and is a group firm of Dewan Housing Finance Corp Ltd.
Each retail outlet, even if part of a chain, now needs to obtain multiple licences and permits, such as trading licences and product licences, adding to time and costs, Federation of Indian Chambers of Commerce and Industry (FICCI), said.
"Granting industry status may facilitate the provision of fiscal incentives to this high potential sector," FICCI said in its prebudget memorandum.
The retail sector is likely to grow to $427 billion by 2010, with organised retail accounting for about a fifth, and over $30 billion in investment is being planned by domestic and foreign players in retail over 5-7 years, FICCI said.
"The service tax on rent is a major problem. We want that to go," J K Jain, Vice President Finance of Provogue (India) Ltd, which makes and retails men's clothing.
Separate guidelines were needed for retail infrastructure, which is now clubbed with real estate, forcing retailers to get more permits than required, Jain added.
"There needs to be a single window licence for retailers," said Pushpamitra Das, chief executive officer, Wadhawan Food Retail Pvt Ltd, which owns the Spinach retail chain and is a group firm of Dewan Housing Finance Corp Ltd.
Each retail outlet, even if part of a chain, now needs to obtain multiple licences and permits, such as trading licences and product licences, adding to time and costs, Federation of Indian Chambers of Commerce and Industry (FICCI), said.
"Granting industry status may facilitate the provision of fiscal incentives to this high potential sector," FICCI said in its prebudget memorandum.
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The retail sector is likely to grow to $427 billion by 2010, with organised retail accounting for about a fifth, and over $30 billion in investment is being planned by domestic and foreign players in retail over 5-7 years, FICCI said.
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