INSTITUTIONAL TAX: Deputation of All Industry and Trade Forum submits memo to DETC


Ludhiana, October 17, 2012: All Industry and Trade Forum, Ludhiana under the leadership of its co convener Badish K Jindal submitted a memorandum toKanwalpreet Kaur Brar, Deputy Excise and Taxation Commissioner, Ludhiana today, with regard to imposition of institutional tax.

The memorandum reads; “ It is submitted that the Government of Punjab had imposed the Institutional Tax on the Industrial and Commercial establishments outside the City limit vide its circular No. 13 legislative dated 3rd of June, 2011 and the DETC office had given the responsibility to collect such taxes. But we have the following quarries in this regard:

  • The Industrial units in such areas had already paid the External Development Charges before settling up their units as per their land sizes, but no external development had been carried out by any agency of the State Government in such areas.
  • The purpose of Institutional tax is not clear as per the Act because in this no provision have been given for facilitating such units,
  • In case the concerned units have any problem regarding their infrastructure which will the concerned department to be connected because the Excise and taxation Department, we feel is not the appropriate department for such activities.
  • In the cities the governments have introduced the SPV act 2012 under the Industrial policy, as per this act the SPV’s of such areas can collect the tax and can develop their areas as per requirement, whereas the units outside the city limits have not been given any such facility which is a step motherly treatment to these units .
  • The concerned units due to their locational disadvantages have to spend more expenditure such as freight, security, power lines and labor transportation under such circumstances it is unjustified to levy such taxes on the concerned units.”

The deputationists requested that this act requires to be amended and by that time the process of collecting this tax requires to be upheld.

Wednesday, October 17, 2012