Punjab govt gives rebate in tax to dealers, shopkeepers

The Punjab government today extended the ambit of 'Rahat scheme' to the entire state including Corporations and class-I cities and announced rebate in tax for dealers and shopkeepers.
The lumpsum tax for dealers having annual turnover of less than Rs 10 lakh has been reduced and now the shopkeepers having turnover between Rs 5 lakh to Rs 10 lakh would have to pay Rs 1,000 as lumpsum tax instead of existing Rs 5,000, an official spokesman said here.
A decision to this effect was taken here by the state cabinet in a meeting held unde the chairmaship of chief minister Parkash Singh Badal.

"The shopkeepers having turnover less than Rs 5 lakh have been given the option of getting a Nil Tax liability certificate at the payment of token fee of Rs 50," the spokesman said.
The Cabinet decided that there would be no hike in rates of lumpsum tax for a period of three years up to March 31, 2018 and thereafter, there would be an annual increase of 5 per cent in it.
In an another initiative, the Cabinet also gave nod for introducing a compounding scheme for Iron and Steel Re-rolling mills in the state.

"The scheme stipulates that the tax liability of these industries would be linked with the units of electricity consumed for production of finished goods. The units opting for this scheme would discharge its output Tax liability by paying 50 paisa per unit of the electricity consumed and by way of 2 per cent advance tax on the import of scrap directly or through the traders," the spokesman said.

With a view to bringing all unauthorized constructions outside Municipal limits in the state under the umbrella of planning framework for ensuring parking, public health and securities facilities in these buildings, the cabinet also gave nod to a compounding policy under which the owners of the authorized buildings could apply to the Housing and Urban Development department for regularization of their buildings.
"This would help the owners to avail the facility of water supply, sewerage and power connections," he said.
In another decision, the cabinet approved to exempt Iron and Steel, Yarn, Sarson (Mustard), Cotton, Vegetable Oils and Paper board from e-trip.