The Jammu and Kashmir government has retained tax assessment and administration powers under the Goods and Services Tax (GST) regime, which was an intractable issue post GST implementation.
"In a welcome move, the Union Finance ministry has agreed to our contention of retaining cent percent assessment powers by the state's tax administration for businesses up to an annual turnover of Rs 1.50 crore as also for the new businesses," state Finance Minister Haseeb Drabu said.
He said the Union Finance Ministry, in another significant decision, has agreed to the state's proposal of assessing the businesses with a turnover of more than Rs 1.50 crore on 80:20 basis.
Under this arrangement, 80 per cent of all assessees with a turnover above Rs 1.5 crore in Jammu and Kashmir would be assessed by the state authorities, while the remaining 20 per cent would be assessed by the Central authorities, he said.
"In a major relief for the local businesses, each assessee in J-K will be assessed only by one authority and they wont have to jump from one authority to other," Drabu said, putting to rest fears over dual administration by the state and Centre.
Drabu said the dual mechanism of assessment would have created administrative hassles for the tax administration and the businesses in Jammu and Kashmir.
In case of other states, the assessment mechanism for the businesses with turnover of above Rs 1.50 crore would be on 50:50 basis between the state and the Centre, he said.
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