*All registered units eligible for benefits
Excelsior Correspondent
JAMMU, May 21: The Industries & Commerce Department today announced Turnover Incentive Scheme-2021 for all existing industrial units which will be effective for a period of five years from April 1, 2021 to March 31, 2026 unless reviewed by the Government.
The Scheme was released today by Ranjan Prakash Thakur, Principal Secretary to the Government, Industries & Commerce Department. The Scheme will come into effect concurrently with J&K Industrial Policy 2021-30 and will cover all existing registered industrial units in Jammu and Kashmir.
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The quantum of incentives admissible to an existing industrial unit located in Jammu and Kashmir will be 3 percent of the gross turnover of the industrial unit for the year, in case of micro-category units defined under the MSMED Act 2006 and modified vide by the Government of India on June 1, 2020.
However, the incentive will be subject to a maximum of Rs 10 lakh per annum per unit for a period of five years from the appointed date.
As per the new Scheme, all industrial units registered with the Department of Industries & Commerce and having a GST number as on March 31, 2021 would be eligible under the Scheme. No separate registration shall be required for availing incentives under the Scheme.
“The incentive will be 2 percent of the gross turnover of the unit for the year in case of Small, Medium and Large category industrial units as defined under the MSMED Act 2006 and modified by the Central Government on June 1, 2020 subject to a maximum of Rs 50 lakh per annum per unit for a period of five years from the appointed date,’’ as per the document released this evening by the Industries and Commerce Department.
It added that the turnover incentive will be available subject to availability of funds on proportionate basis of the turnover disclosed by the industrial unit.
According to the Turnover Incentive Scheme 2021, the incentive will be calculated on the basis of turnover.
And for the purpose of determining the turnover, the highest turnover of three preceding financial years up to 2020-21 will form the turnover for calculation of the incentives. However, in no case the incentive will be higher than the turnover of the current financial year.
The Industries and Commerce Department has also explained the procedure for determining the turnover. As per the document, for determining turnover for current financial year 2025-26, the turnover for financial years 2018-19, 2019-20, 2020-21 and 2025-26 is Rs 2 lakh, Rs 1 lakh, Rs 4 lakh and Rs 3 lakh respectively. The turnover for determining turnover incentive will be Rs 3 lakh.
“The eligible industrial units will have to apply for the turnover based incentive on yearly basis and the claims will have to be submitted by 31st December of the subsequent financial year.
“The Director Industries and Commerce will have to ensure that at least one meeting of the Divisional Level Committee is held at regular intervals to avoid accumulation of claims. He will also have to ensure 30 percent audit of all claims under Turnover Bases Incentive Scheme, cleared by the Divisional Level Committee by his office before disbursement.
The Divisional Level Committee of the respective Directorates of Industries and Commerce will sanction incentives under the Scheme for disbursement by the concerned General Manager.
The Divisional Level Committee will be headed by the Director Industries and Commerce as Chairman and will have Joint Direction (Development), Chief Accounts Officer and Deputy Director (PDM), all in Directorate of Industries and Commerce as Members and the General Manager DIC concerned as Member Secretary.
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