Turnover Incentive Scheme 2021, J&K Government

Jammu and Kashmir administration has newly approved the Turnover Incentive Scheme for the industrial units in the union territory. Approval for the scheme was given by the administrative council headed by LG Manoj Sinha on Friday, May 21, 2021. This scheme is applicable to all the micro, small, medium and large industrial units. It will be in operation for 5 years till 2026. Under this scheme Micro enterprises/ units will get 3% of their gross turnover for the year as incentive with a limit of 10 lakhs for 5 years. Small, Medium and Large enterprises/ units will get 2% of their gross turnover for the year with a limit of 50 lakhs for 5 years. This scheme will turn out to be a boon for all the industrial units constantly facing losses since last year due to the ongoing pandemic situations all over.

Overview:

Objectives and Benefits:

• This scheme aims to boost the industrial sector in the union territory
• Incentives will be provided in proportion to the gross annual turnover of the industrial unit on pre decided rates
• It will cover all the micro, small, medium and large units in the union territory deemed as registered will be covered under the scheme
• Under this scheme, Micro enterprises/ units will get 3% of their gross turnover for the year as incentive with a limit of 10 lakhs for 5 years.
• Small, Medium and Large enterprises/ units will get 2% of their gross turnover for the year with a limit of 50 lakhs for 5 years.
• Units are not required to separately register for availing the incentives under the scheme
• This scheme will assist the industrial units facing losses since last year due to the pandemic situations

Key Points:

• The administrative council headed by LG Manoj Sinha, approved the Turnover Incentive Scheme 2021 for the registered industrial units in the union territory
• This scheme is a part of the New Industrial Policy 2021-31 as announced by the administration earlier
• Under this scheme the registered micro, small, medium and large units will be covered
• Accordingly, the Micro enterprises/ units will get 3% of their gross turnover for the year as incentive with a limit of 10 lakhs for 5 years.
• Small, Medium and Large enterprises/ units will get 2% of their gross turnover for the year with a limit of 50 lakhs for 5 years.
• The industrial units are not required to register separately for availing the benefits under the scheme
• Registration under the Department of Industries and Commerce and a valid GST number is enough for availing the benefits
• The industrial units will only have to apply for the incentives annually thereby mentioning their annual turnover by December 31 of the subsequent financial year
• As per the annual turnover at the rates decided, the incentive amount will be transferred to the unit
• Implementation of the scheme will be handled by the Director Industries and Commerce and divisional level committee of 5 members
• Meetings will be held at regular intervals to handle the claims and disbursement of the same
• This scheme will be a boon to the industrial sector which has been facing losses since last year due to the pandemic situations
• It will give a boost to the industrial sector thereby contributing to economic growth and development of the union territory in the long run.