The Hindu : Other States / Punjab News : Wide-ranging tax concessions approved

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Wednesday, May 04, 2005

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Other States - Punjab

Wide-ranging tax concessions approved

Staff Correspondent

Proposals bring relief to manufacturers, exporters, traders and consumers

CHANDIGARH: The Punjab Council of Ministers, which met here under the chairmanship of Chief Minister Amarinder Singh, on Tuesday approved proposals by the Excise and Taxation department, to grant a wide range of concessions worth Rs. 350 crores, providing relief to the manufacturers, exporters, traders and consumers.

According to an official release these concessions included Rs.150 crores on the armed forces' Canteen Store Departments (CSD), Rs 20 crores on pesticides and fertilisers, Rs. 21 crores on tea, Rs. 3 crores on green tea, Rs. 1 crore on flour, maida and suji, Rs. 8 crores on nuts and bolts, Rs.10 crores on hand tools, Rs 5 crores on dry fruit and Rs. 32 crores on miscellaneous items.

CSD sales exempted

The release said that the government also exempted all the sales made through the CSD under the value added tax (VAT) regime with effect from April 1, this year.

Similarly, fertilisers and pesticides had been made exempted from any tax levy. The decisions, except for those related to the CSD, would come into force from May 5.

Various articles in 13 and nine separate categories, which were subjected to 12.5 and four percent levy, respectively, have been completely exempted from any tax.

Meanwhile, tax on another 55 categories has been reduced from 12.5 to four percent.

The government also favoured inclusion of 63 new items in the list of industrial inputs into the existing list of 180 for providing taxation benefits to the users.

Delayed payment interest

Besides, it was also decided that the rate of interest to be paid by the State or a trader in case of delayed payments be made uniform at one percent per month and the mandatory prior payment for entertainment of an appeal be restricted to 25 percent only.

The intra-State sales to government departments and electricity board would be allowed against D- form and intra-State purchases for international exports would be allowed against H-form.

The meeting decided to do away with the provision for verification of cash and valuables while monthly returns were allowed to exporters and inter-State traders at their option to facilitate early refund, which would be allowed within 60 days instead of 90.

The Council of Ministers also decided to constitute a sub committee comprising the Ministers for Finance, Excise & Taxation and Foods & Supplies to look into all representations from trade and industry pertaining anomalies in the implementation of VAT.

This sub committee would bring specific proposals for Council of Ministers for consideration.

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