With this decision, about 8,500 cases would now be assessed every year, according to an official statement. The value-added tax (VAT) assessment was related to cases of category 'C' forms, which are used for inter-state business transactions.
The decision was taken during the Cabinet meeting chaired by Chief Minister Charanjit Singh Channi here, said the statement.
Although it has been nearly four-and-a-half years since the end of the value-added tax (VAT) regime, there was still a heavy burden of VAT assessment on traders coupled with difficulties in providing C-forms to them.
The Cabinet also gave approval to exempt traders from making payment of 70 per cent of the excess demand raised by the taxation department. Now, they will be only required to deposit 30 per cent of the surplus demand, another move that also cost the state exchequer to the tune of Rs 940 crore.
The traders can pay 20 per cent by March 31, 2022, and the remaining 80 per cent by March 31, 2023, said the statement.
In another decision, the Cabinet approved the One-Time Settlement (OTS) Policy, 2021, for the settlement of dues of Punjab State Industrial Development Corporation Ltd, Punjab Financial Corporation (PFC) and Punjab Agro Industries Corporation (PAIC).
It will help resolve long-pending litigation and settlement between the corporations and the private investors, it said.
With PTI inputs.