In a letter to PM. PCAIT ￼President and secretary praised the efforts of the PM and urged to support the SME organizations
Prime Minister Sir,
I am ardently appealing hereunder on behalf of Progressive Channels Association of Information Technology (PCAIT), an association of business entities of business owners and entrepreneurs in the domain of supply and services of Information Technology hardware, software products and accessories. It is pertinent to submit that businesses of our members are potential breeding grounds for jobs wonted for skilled, semi-skilled and unskilled youth of the country.
The Nation is facing unprecedented crisis arisen from zoonotic infection of Covid-19 and the Government of India by promulgating countrywide Lockdown has demonstrated alacrity in timely responding to avert further spread of infection. Understandably, the decision of three weeks complete lockdown has been rationally arrived after balancing the healthcare and economic imperatives. At the outset on behalf of PCAIT, I express solidarity of all our members to the clarion call of Government of India for ‘Lockdown’ and consequently righteously have shut down respective businesses and are confined to their respective homes.
The international media is rapturously applauding the proactiveness shown by the Leadership of Government of India while dealing with the current crisis thus giving a reason to every Indian to remain felicific and be convinced to emerge winner after this ‘Mahabharat with Covid-19.
I herein elicit aftermath of lockdown of expected sufferance of small businesses with regard to cash flows and ensuing default in discharging the contractual payment liabilities. Quintessentially, Capital of small business entity is divided between Stocks in hand, Stocks in transit and receivables from customers besides necessary fixed assets to successfully perform the business functions. Hence, in view of fact of loss of business imputed to lockdown, the Government of India must issue to both private and government enterprises an appropriate directive for immediate payment of confirmed credits to small business entities. Else, there is all the likelihood of triggering of dominoes of payment default, including inability of small business entities to pay the Salaries of employees for the period of lockdown. Whereas, it is common knowledge that on the other hand European Governments are funding business entities to keep employees on the payroll through the pandemic.
We at PCAIT reiterate foregoing directive and vehemently press the bona fide demand for immediate issuance of directive from Government of India to both direct and indirect Tax departments to refund to small business entities long pending Income Tax and GST, with the intent to ease the small business cash flows.
We assure all the hands on deck in nation’s fight against the Covid-19, which has, beget the global health crisis consequently, we have already initiated collection from our members to contribute to the PM-Cares fund.
Saket Kapur, General Secretary, PCAIT
Alok Gupta, President, PCAIT