IT exemption to Industry: JK yet to get any signal from centre for extension
Entrepreneurs Say Non-Extension Will Dampen Investor Confidence
Srinagar, Mar 30: As the 10-year Income Tax exemption to industry sector in J&K is coming to end on March 31, state government is yet to get any signal from the centre about its extension, though minister for industry S. S. Slathia is hopeful the scheme will be extended.
According to Minister for Industries, S S Slathia the State has taken up the issue with the centre government three times in the recent past seeking extension of the scheme.
“We have taken the issue thrice with the Centre and we were hopeful that there will be an announcement on extension in Union Budget 2012-13. But to our dismay no such announcement was made in the budget,” Slathia said.
To a question, the minister said: “There is no question of being callousness on the part of the government towards the issue. We have already pleaded the issue before the centre government.”
The minister said: “Jammu and Kashmir is not the only state where the IT exemption is coming to an end. Many other states which are availing benefit of the exemption are demanding its extension.”
Salathia said: “We are hopeful the centre will extend the exemption.
President, Kashmir Chamber of Commerce and Industry (KCCI), Abdul Hamid Punjabi said: “It is unfortunate that the state has failed to project the case for extension of the package.”
He said: “As the industrial sector is one of important sectors in our economy, the government should have taken up the issue of extension of package with the centre government in right earnest without waiting for the fag end of the year.”
Punjabi said: “If the package is not given extension it will have a damaging effect on the industrial sector as new investors will shy away from investing in this sector.”
President, Federation Chamber of Industries Kashmir (FCIK) Zahoor Ahmad said non-extension of IT exemption for industrial sector will act as obstacle for upcoming investors.
“Our economy is already suffering due to hostile conditions prevalent in the state and non-extension will further affect it. It will dampen the spirit of new investors,” Zahoor said
Pertinently, the 10-year Income Tax holiday announced in 2002 for Industrial Sector in J&K and some other states is coming to end on March 31.
To mention, under the existing dispensation, the amount of deduction in case of industrial undertaking in an industrially backward state including J&K is 100 percent of the profits and gains derived from such industrial undertakings for five assessment years beginning with the initial assessment year and thereafter, 25 percent (or 30 per cent where the assesses is a company) of the profits and gains derived from such industrial undertakings.
However, deduction is subject to the fulfilment of the condition that it has begun to manufacture during the period ending March 2005 for undertakings set up in J&K.
However, such deduction in this state is not available in case the undertaking manufacturers or produces any article or thing specified in part C of the 13th schedule of the said Act.
The items are (1) cigarettes/cigar of tobacco, manufactured tobacco and substitutes (2) distilled /brewed alcoholic drinks (3) aerated branded beverages and their concentrates.
Lastupdate on : Fri, 30 Mar 2012 21:30:00 Makkah time
Lastupdate on : Fri, 30 Mar 2012 18:30:00 GMT
Lastupdate on : Sat, 31 Mar 2012 00:00:00 IST
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