IAMAI suggests govt to postpone TDS, EPF, ESI for six months to help MSMEs

New Delhi, Apr 22 (KNN) In order to provide more relief to Micro, Small and Medium Enterprises (MSMEs) in the service sector, Internet and Mobile Association of India (IAMAI) has suggested the government to postpone payments such as Tax Deducted at Source (TDS), Employees’ Provident Fund (EPF) and Employee State Insurance (ESI), amid Covid-19 outbreak for six months.

According to the body, it will help small businesses to retain employees while giving maximum cash salaries to them.

The IAMAI, also said that majority of small businesses are facing acute liquidity crunch amid lockdown and have exhausted their savings in salaries and Covid-19 related expenses such as masks, sanitizers etc. at factories and workplaces.

''Consequently, while they somehow managed to pay March salaries to employees but for April and following they might have to make salary cuts even as many of them may have to reduce their workforce,'' IAMAI said in a statement.

“Considering the current health crisis and lockdown, many of these companies may have to resort to salary cuts, which will have a larger impact on the employees,” IAMAI added.