Tea firms to approach Centre to seek exemption from TDS on cash withdrawals

Around 60 per cent of the total cost of production comprises of wages (both in cash and in kind) which is paid in cash

Tea plantation companies, led by the Indian Tea Association (ITA), an apex body of various tea firms, approached the Centre on Saturday seeking exemption from the mandatory norm of paying two per cent TDS on cash withdrawals exceeding Rs 1 crore annually. This new norm was passed in the Union Budget yesterday.

The plantation companies, although keen on digital payments, are of the view that given the infrastructural and banking set-up in the country, it will not be possible for them to digitise payments and the TDS will further stress the firms which are already reeling under financial pressure.

According