Tax relief for sugar mills on higher payment to farmers

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Kolhapur: The sugar mills will not have to pay the income tax on the additional payment made to the sugarcane farmers. They will not be subjected to income tax on the payment amount made to farmers that is higher than the fair price remuneration post 2016. The finance ministry issued a clarification on the matter.

Finance Ministry in an issued circular said,”The issue of treatment of additional payment for sugarcane price by Cooperative sugar mills as an income distribution to farmer members and the resultant tax liabilities has been brought to the notice of the Central Board of Direct Taxes (the Board).”

For last two decades, the sugar mills were fighting to withdraw the clause.

Recently, a BJP delegation led by Opposition leader Devendra Fadnavis held meetings with Home Minister Amit Shah in Delhi. After two rounds of meetings this week, the Centre issued the notification.

To read the full circular, click here

 

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