Excelsior Correspondent
JAMMU, Nov 6: The Kashmir Chamber of Commerce and Industry (KCCI) today expressed concern over the non-settlement of taxation and other budgetary issues by the concerned departments which was causing complications for the business community.
In separate representations to the Governor, Advisor BB Vyas and to the Chief Secretary, the KCCI projected their burning issues and sought early redressal. It said although all issues are equally important for them, yet the Chamber would like to pick the issues which indicate the problems faced by the business community. The main issues included the input tax credit for post 2014 flood period; problems in implementation of Amnesty Scheme for settlement of unresolved Issues of the previous VAT regime.
It said the Kashmir Chamber had taken up the issue of reversal of Input Tax Credit of dealers for the damages in the September, 2014 floods with the then Minister for Finance in December, 2017. The Minister issued instructions to the Commercial Taxes Department to jointly explore the options available with the KCCI to arrive at a acceptable resolution of this problem. After detailed deliberations with KCCI, the Addl Commissioner, Commercial Taxes & Tax Planning recommended the waiving off of the demand of interest/penalty and in addition providing of budgetary assistance for adjustment of the liability of flood hit dealers towards payment of demand of tax, demand of input tax credit or demand on account of reversal of input tax credit.
The same was approved by the Finance Minister on February 6, 2018. The Finance Department then vide it’s letter No. ET/Estt/GST/246/2017 dated March 12, 2018 solicited information from the Commercial Taxes Department about the financial impact of the above.
The Commercial Taxes Department provided details about the demand created on account of Reversal of Input Tax on the June 13, 2018 vide it’s No. CCT/Flood/VAT/1/228 giving break-up of principal, interest and penalty portion of the demand. The same is pending final disposal of the Finance Department since then.
Referring to the Amnesty Scheme for settlement of unresolved issues, they said the issuance of order No. 434- FD of 2018 dated Oct 12,.2018 which grants a final extension for depositing of 1st Installment under Grant of Amnesty Scheme prescribed vide Order No.39-FD of 2018 dated 05.02.2018, read with the subsequent five extensions. The last date for depositing of the installment would now be Nov 14, 2018. The amnesty relates to settlement of unresolved issues in the previous VAT regime.
If the issues were not addressed, it would make the whole exercise one of futility, create huge default, invite litigation and would also deprive the honest dealers of an opportunity to settle and down the shutters for a number of business establishments.
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