CII Session Provides Clarity on 100% Input Tax Credit Under Fiscal Incentive Policy of Punjab

By 121 News

Chandigarh 18^th July:- To Implementation of VAT Retention under Punjab Industrial Promotion Policy 2013,Confederation of Indian Industry organized an Interaction of Industry members with senior Government of Punjab officials at CII NR Headquarters in sector 31 A, here today.  Under this provision, the entrepreneurs are eligible to retain a certain percentage of VAT which is otherwise payable to the state Government. This percentage is based on the quantum of Investment made by him in the stipulated period.

Anirudh Tewari, Principal Secretary – Industries, Commerce & Non-Conventional Energy and CEO, Punjab Bureau of Investment Promotion shared that Punjab Govt is fully committed to protect the interests of the existing industry here. We are aware of some of the problems and issues being faced by the industry here and are taking proactive steps to remove these bottlenecks and support the industry both financially and otherwise. He added that we understand that easing the business environment is critical for the success of 'Make in India' campaign in Punjab as well as to position Punjab as a preferred investment destination. Hence we are regularly interacting with the industry to discuss the way forward on how to create an enabling environment conducive to the existing industry as also attracting new investments.

Anurag Verma, Commissioner – Excise & Taxation, Punjab during the discussions clarified that under this provision, in the event the manufacturer sells his goods within the state, the seller can claim a 100% Input Tax credit whereas if the goods are sold outside the state, Input Tax Credit upto the amount of tax actually deposited can be claimed.

Anirudh Tewari & Anurag Verma shared that the rationale behind this provision is to forgo the earlier practice wherein the entrepreneur had to first deposit the VAT with the authorities and later he had seek refunds which involved lot of hassles for the Industry. The objective of this provision is to promote Ease of Doing business and also incentivize the Industry to make new investments & scale up their operations. Besides the VAT retention, the newly setup units & those undergoing expansion would also qualify for Stamp Duty exemption & Excise duty exemption on Electricity.

Earlier Sachit Jain, Member- CII Punjab State Council & Executive Director- Vardhman Group appreciated the state Government's initiatives & policies to encourage & incentivize the industry to make new investments & undertake expansion in the state.  Mr Jain in his address also requested the officials present to ensure that variance between the policies announced and the actual implementation is minimal.

Rahul Ahuja, Convenor, CII Punjab Manufacturing, Competitiveness & MSME Panel & Jt Managing Director, Rajnish Industries Limited in his concluding remarks thanked and appreciated the proactive attitude of state Government to redress the issues of Industry. Mr Ahuja remarked that such focused sessions infuse a sense of confidence among the local Industry who then actually become the brand ambassadors for attracting new investments & anchor industrial units to the state.