Punjab Cabinet exempts 1.50 lakh cases of tax assessment from C form

CHANDIGARH: In a major reprieve to the traders across the state, the Punjab Cabinet on Wednesday decided to exempt about 1.50 lakh cases from assessment related to cases of 'C' form for the past years from 2014-15 to 2017-18.

Resultantly, about 8500 such cases would now be assessed under this category every year. This trader friendly decision would cost Rs. 200 crore on the state exchequer.

This decision was taken during the Cabinet meeting chaired by Chief Minister Charanjit Singh Channi here at Punjab Bhawan this afternoon.

To further boost trade and economic activity in the state, the Cabinet also gave approval to exempt the traders from making payment of 70% of the excess demand and now they would be only required to deposit 30% of the surplus demand. This decision would also cost the state exchequer to the tune of Rs. 940 crore. Subsequently, they would now be required to deposit the said amount i.e. 20% of the 30% portion of the additional demand by March 31, 2022 and the remaining 80% by March 31, 2023.

Notably, the state government has taken these significant decisions to facilitate traders in the wake of the recent Covid pandemic. Although it has been nearly four and a half years 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.

In a bid for rehabilitation & revival of the Industries in the state by offering a unique opportunity to entrepreneurs of promoted and loanee companies, the Cabinet approved One Time Settlement (OTS) Policy-2021 for Punjab State Industrial Development Corporation Ltd. (PSIDC), Punjab Financial Corporation (PFC) and Punjab Agro Industries Corporation (PAIC) for settlement of their dues with through this new policy.