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Unregistered copper market causing Rs 500-cr loss to govt

Megha Manchanda/New Delhi 26 Apr 17 | 06:09 AM

The central government incurs a revenue loss of Rs 500 crore every year owing to non-payment of taxes by the unregistered secondary copper market, which accounts for 45 per cent of the copper scrap processed in the country, according to the International Copper Association India (ICAI). 


The association says the production of sub-material by the secondary industry has impacted the domestic market. The ICAI is a member of Copper Alliance and the Indian arm of the International Copper Association Limited (ICA).

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Total copper and brass market in India is estimated to be around 400,000 tonnes, and copper scrap accounts for 60 per cent of the market. According to a report by the association, there are over 1,000 copper scrap processing units in the country, of which over 750 are unregistered.


Domestic supply of scrap accounts for three-fourth of the total supply in India, and the national capital region (NCR) is the main hub where scrap from major parts of the country is transported.

 

Unregistered firms operate without a registered company name and are not registered with the ministry of corporate affairs and the state income tax department. These businesses operate under dubious names and conduct without bill or cash transactions.


ICA India claims that physical bills are not provided whenever any scrap trade takes place. The orders, it says, are executed via phone calls and goods are confirmed by sharing snapshots of goods supplied.

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