In a major relief to traders ahead of the assembly polls, the Punjab Government has decided to exempt about 1.50 lakh cases from assessment related to cases of ‘C’ form from 2014-15 to 2017-18.
The decision was taken during the Cabinet meeting chaired by Chief Minister Charanjit Singh Channi here, said the statement.
Although it has been nearly four-and-a-half years since the end of the value-added tax (VAT) regime, there was still a heavy burden of VAT assessment on traders coupled with difficulties in providing C-forms to them.
The Cabinet also gave approval to exempt traders from making payment of 70% of the excess demand raised by the taxation department. Now, they will be only required to deposit 30% of the surplus demand, another move that also cost the state exchequer to the tune of Rs 940 crore.
The Cabinet approved the One-Time Settlement (OTS) Policy, 2021, for the settlement of dues of Punjab State Industrial Development Corporation Ltd, Punjab Financial Corporation (PFC) and Punjab Agro Industries Corporation (PAIC).
It will help resolve long-pending litigation and settlement between the corporations and the private investors, it said.
“This trader-friendly decision would cost Rs 200 crore to the state exchequer,” an official statement said.
To further boost trade and economic activity, the Cabinet meeting, chaired by Chief Minister Charanjit Channi, here also gave the approval to exempt the traders from making payment of 70 per cent of the excess demand and now they would be only required to deposit 30 per cent of the surplus demand.
Since the end of the VAT regime, there was still a heavy burden of VAT assessment on the traders coupled with difficulties in providing C-forms etc. to them. Forms ‘C’s are used for filing returns against the tax already paid in interstate sale of goods.