The Federation of Surat Textile Traders’ Association (FOSTTA) has highlighted the issue of delayed payments faced by textile traders from buyers/businesspersons. Traders nationwide are urged to prioritise timely payments over returning purchased goods, as delays stem from challenges in aligning with the payment time limits outlined in the Income Tax Act.
Under the current regulations, buyers are required to settle payments to small and micro businesses within 45 days of purchase, whereas the textile trade typically operates on a payment cycle of 90 or 180 days. FOSTTA officials have taken to social media to address the confusion surrounding the I-T Act rules affecting MSMEs, emphasising the importance of prompt payment for ordered goods.
In response to the growing concerns, FOSTTA leaders, including Kailash Hakim, have cautioned that repeated complaints could prompt stringent measures by the association. The textile industry in Surat is experiencing a significant slowdown, with textile manufacturing, trading, and transport activities dwindling to half of their usual daily volume. Despite efforts by FOSTTA and SGCCI to raise the issue at Governmental levels, a resolution remains elusive.
