The Indian Tea Association (ITA) on Saturday requested the Finance Ministry to withdraw the rule of paying two per cent Tax Deducted at Source (TDS) on cash withdrawals of Rs one crore annually.
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The ITA had said that imposition of two per cent TDS from the tea companies will compromise with their liquidity position as most of these firms are facing financial difficulties.
Due to the lack of proper banking facilities in the tea garden areas, the tea workers are mostly paid in cash.
ITA also added that the tea workers receive their wages either in cash or in kind.
The tea body also urged the finance ministry to give due recognition to the wages that are paid in kind to the tea workers.
Finance Minister Nirmala Sithraman on Friday announced that the government is proposing to streamline multiple labour laws into a set of four Labour Codes as a part of an initiative of the Union Budget 2019-20.