Srinagar, Apr 1: The Federation Chamber of Industries Kashmir has welcomed SRO-146 issued on March 31 by the Finance Department extending tax remission to small, medium and large scale industrial units by another one year up to 31st March 2011.
 In a statement here today, FCIK President, Shakeel Qalander hailed Finance Minister and other officials of the Finance Department for extension.
  He said the FCIK was vigorously persuading the case to get the SRO issued before the expiry of VAT remission that had been granted to the industry under of SRO-91 of 16.3.2005.
 “Any delay in issuance of SRO would have created lot of confusion with regard to the billing of the industrial products by industrial units from April 1st 2010 in absence of  an authentic government order,” he added.
 The FCIK President, however, advised all industrial entrepreneurs to make price adjustment as per the revised tax rates as the old rates of 4 per cent and 12.5 per cent had been substituted with 5 per sent and 13.5 per cent respectively from April 1, 2010.
 “Any error made by the units in seeking remission as per the revised tax rates would land them in unnecessary trouble,” he said.
 The President FCIK requested all industrial associations to conceive and disseminate information in this regard to their members.
 To mention the industrial units in J&K formally registered with the Department of Industries & Commerce, Directorate of Handicrafts and Handlooms as also with the Department of Commercial Taxes are entitled for exemption from VAT on their finished goods on remission basis.
 These units need to make price adjustment in the selling price equivalent to the amount of tax chargeable on the finished goods sold whereafter tax is charged on the net selling price so that the benefit of such price adjustment is passed on to the purchasing dealer or consumer.
 The industrial units, however, lose the entitlement to tax remission if they failed to make price adjustment. The Government order is clear that in case of partial price adjustment by the industrial units, the tax remission would be made to that extent only and rest of the tax shall have to be deposited by the entrepreneur from their own pocket.
 The industrial fraternity from across the valley has expressed satisfaction on extension of VAT remission to the industry and in this regard has conveyed gratitude to the State authorities. They have also hailed the efforts put in by the FCIK in motivating the Government for such an extension.
 The entrepreneurs claim that in absence of adequate infrastructure, marketing, credit flow and other factors, the industry in the State is unable to compete with their counter parts from other States.
 The VAT exemption, benefit of which is passed on to the consumers, make the local industrial products to compete with the prices for goods coming from other states and any withdrawal in such an exemption would definitely have caused trouble for the very existence of local industry.

Lastupdate on : Thu, 1 Apr 2010 21:30:00 Makkah time
Lastupdate on : Thu, 1 Apr 2010 18:30:00 GMT
Lastupdate on : Fri, 2 Apr 2010 00:00:00 IST