Industry to enjoy VAT remission for another fiscal
GK NEWS NETWORK
Jammu, Mar 7: Finance Minister, Abdul Rahim Rather today said the industrial units registered within the state have been enjoying the benefits of exemption from payment of GST under the specified conditions and for the specified period as per the package of incentives applicable to them.
While switching over to VAT regime, such units were allowed the benefit of remission of VAT for the remaining period of their entitlement under the package of incentives applicable to them, the FM said while presenting the budget proposals 2011-12 in the Assembly today.
He added: “I had announced extension of these benefits in favour of the eligible industrial units for a period of one year which is about to end on the 31st March 2011. I now propose to extend this benefit for a further period of one year or adoption of GST Act by the State, whichever happens to be earlier. As per a rough assessment, the cost of this concession works out to around five hundred crore of rupees annually,” he said.
He said the Industry has represented that under the present arrangement the verification of consumption of raw materials consumed by the registered SSI units is being done by the concerned authorities on quarterly basis for purpose of issuance of Toll exemption forms. “This system creates avoidable difficulties in functioning of these industrial units. On the demand of the Industry, I propose to relax this requirement. Henceforth such verification shall be done on yearly basis.”
Taxes on hotels:
Most of the other States of the country, have levied taxes on room rent charged by the hotels, lodges and guest houses. For them, it is a substantial source of revenue. Additionally, Luxury Tax is also levied in many States, he said.
The FM said: “In our state, the tourism industry suffered in the nineties because of the disturbed law and order conditions. As the then Finance Minister, I had announced several concessions for the tourism industry over a decade back. These concessions have been continuing since then, more or less in the same form. Total GST exemption on the rental income of hotels, guest houses and lodges is one of them. “
“In order to sustain the tourism industry, I had announced to continue exemption from payment of GST on such rental income for a further period of one year which is going to end on the 31st March 2011,” he said.
He said: “The current year has witnessed improvement in the number of tourist arrivals into the State, including a record number of pilgrims to Mata Vaishno Devi shrine and Amar Nath cave. I would wait and wish to see the tourism industry well stabilized in near future.”
“As a measure of my continued support to this industry, I propose to continue this concession for yet another year commencing from the 1st April 2011.”
Lastupdate on : Mon, 7 Mar 2011 21:30:00 Makkah time
Lastupdate on : Mon, 7 Mar 2011 18:30:00 GMT
Lastupdate on : Tue, 8 Mar 2011 00:00:00 IST
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