Kashmir permits self-certification to avail tax waiver on flood relief

The Jammu and Kashmir government Thursday issued an order permitting self-certification by NGOs/groups/individuals to avail tax exemption for relief material brought from outside for flood victims in the state.

"Provided further that the goods being sent or received by any non-governmental organization(s)/institution(s)/individual(s) shall also be exempted from the levy of toll on the submission of the certificate by such NGO(s)/institution(s) to the effect that the goods are meant purely for relief and rehabilitation of the persons and the families affected by the unprecedented floods in Jammu and Kashmir," the administrative order said.

"However, in case of individual(s) sending the relief material, the said certificate should expressly mention the name of the identified consignee receiving such goods."

Chief Minister Omar Abdullah said such an order had become necessary since people bringing in relief material for flood victims had been demanding tax exemption for such goods.

He said it was necessary to ensure unscrupulous traders did not avail tax exemption in the guise of flood relief, but added that in the larger good, making tax exemption available on self-certification of flood relief material had become unavoidable.

"Order regarding relief NOC was intended to check unscrupulous traders bringing in regular supplies in guise of relief for sale in markets," he tweeted.

"Unfortunately some cases were brought to light prompting finance minister to issue this order. Noting problems faced with genuine relief.

"This order has been modified to allow for self-certification by groups/organizations/ individuals bringing in relief material.

"While this provision may also be misused by some, in the larger good I felt it absolutely critical to remove this bottleneck ASAP," said subsequent tweets.