FCIK for bringing 15 more items under 0 pc VAT in JK

The Federation Chamber of Industries Kashmir (FCIK) Friday demanded that fifteen more items be brought into zero percent value added tax (VAT) in J&K.

At a meeting with incoming chairman Empowered Committee of State Finance Ministers (EC) on VAT Dr Asim Dasgupta, the federation headed by its senior vice president argued that even as the empowered committee had exempted 10 items of local importance in every state from VAT, in respect of J&K it should extend the list to 25.

“Given that the J&K state comprises of three distinct zones, its items of local importance do vary from one zone to another. So in order to accommodate maximum number of items of local importance the empowered committee should extend its list of zero percent VAT from ten to twenty five in case of J&K.

“We want 10 more items from the handicraft sector like shawls and carpets be bought in the zero per cent VAT,” the members informed the chairman.

The empower committee has been constituted by the government of India to oversee the working of the VAT regime throughout the country.

FCIK also demanded that the committee should look into the discrepancies in the state while implementing the VAT.

“Carpet and Shawl industry have a great local importance in the Valley, so we want these items to be bought under the ambit of 0 per cent VAT,” the members said.

“Our export trade of the carpets and shawls is being affected by the imposition of VAT,” they said.

The FCIK also demanded the declaration of the Form-C should also be withdrawn. “One time exemption should be granted to the state entrepreneurs,” the members said.

While maintaining that under GST brick kilns and stone crushers were exempted from the tax, but under the VAT regime both had been taxed, the federation demanded that they should be exempted from the VAT and they be registered without charging any fees.

Chairman EC assured the members that the committee would seriously look into the demands and consider them on merits.