Kashmir Chamber of Commerce and Industry (KCCI) expressed concern at the non-settlement of taxation and other budgetary issues by the concerned departments causing complications for the business community.
In a statement KCCI said it had taken up the issue of reversal of input tax credit of dealers for the damaged goods 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 KCC&I and arrive at a acceptable resolution of the problem. After detailed deliberations with KCC&I, the Additional Commissioner, Commercial Taxes & Tax Planning vide his communication No. Gen/DTC/VAT/1764 dated 23rd of January, 2018 recommended waiving off of the demand of interest/penalty and 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.”
KCCI further said it was approved by Finance Minister on 6 February 2018.
“The Finance Department then vide it’s letter No. ET/Estt/GST/246/2017 dated 12th of March, 2018 solicited information from the Commercial Taxes Department about the financial impact of the above.”
Giving further details, KCCI in the statement said the Commercial Taxes Department provided details about the demand created on account of Reversal of Input Tax on the 13 June 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.”
It said final settlement of this issue is also connected with availing Amnesty Scheme announced under Order No. 39-FD, details of which are explained in the following point.