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Noida manufacturers push for form 38 waiver.


Date: 26-09-2015
Subject: Noida manufacturers push for form 38 waiver
NOIDA: Over 7000 manufacturing units of Noida, in a plea to the UP state government has requested that the state should waive the Form 38 hiccup, to make purchases smoother for city-based manufacturers.

Form 38 is a compulsory import declaration form issued by the commercial-tax department of Uttar Pradesh. A document, which the entrepreneurs need to get cleared to be able to fetch any raw material into Noida or another manufacturing hub of UP. A physical clearance of Form 38 is needed for manufacturers with turnover lesser than Rs 50 lakh per year. For those above that barrier, the process goes online.

"There are no taxation benefits involved in this. It is a simple piece of paperwork and it is most cumbersome because often when supply of material is totally lined up, our purchases get stuck with the online system either not working or some other deterrent," Vipin Kumar Malhan, President of the Noida Entrepreneur Association said.

According to Malhan, many states have done away with this process to be able to make purchases easier for manufacturing companies. "Haryana, Himachal Pradesh and Uttarakhand have done away with the Form 38. It makes it convenient for manufacturers to procure material and speeds up the manufacturing process. If industry is expected to do well in UP and specifically in Noida, we should try and simplify the process for manufacturers here as well," Malhan added.

"Various states have found a way to approve purchases and material movement into state borders on the basis of checking challans and purchase documents. We hope UP too adapts such systems. If the state has to push industrial growth, processes need to work seamlessly," Sushil Sood, an Executive Council member of Noida Entrepreneurs Association (NEA) said.

NEA has a membership of 1500 entrepreneurs in Noida and works as a facilitator for the community in the city.

Source : timesofindia.indiatimes.com

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