The Madhya Pradesh Government has enacted the Madhya Pradesh Value Added Tax (Amendment) Act, 2010. Some of the significant changes under the said Act are as follows:
- Effective from 1 April, 2010, the rate of tax on goods falling under Part IV of Schedule II has been enhanced from 12.5% to 13%.
- Effective retrospectively from 1 August, 2009, if a dealer holds separate registrations for more than one unit owned by it in Madhya Pradesh, inter-unit transfer of goods specified in Schedule II to the Madhya Pradesh Value Added Tax Act for the purpose of sale, consumption or use in/for manufacture of goods specified in the Schedule II shall be construed as independent transactions of sale or purchase.
Source:- The Madhya Pradesh Value Added Tax (Amendment) Act, 2010 published in Official Gazette on 1 April,2010.
Madhya Pradesh Central Sales Tax amendments :-Goods specified under Part III of Schedule II to the Madhya Pradesh Value Added Tax Act enjoyed exemption from Central Sales Tax till 31 March, 2010 subject to the condition that the goods have already been subjected to tax under the Madhya Pradesh Value Added Tax Act. The exemption has now been extended till 31 March, 2011.
Source:- Notification No.F-A3-60/2005/1/V(49) dated 1 April, 2010
Madhya Pradesh Entry Tax amendments
Levy of entry tax on goods brought for construction purpose
Effective from 1 April, 2010, persons bringing goods specified in Schedule II of the Madhya Pradesh VAT Act into any local area within Madhya Pradesh are liable to entry tax if the said goods are brought for the purpose of construction and a subsequent sale or letting out of:
- five or more residential houses/flats or
- a commercial building of more than 5,000 square feet
The applicable rate of entry tax in respect of the subject goods will be the rate at which these goods are liable to VAT under the Madhya Pradesh VAT Act.
Further, entry tax liability will be only on those persons in whose hands the subject goods have not suffered tax under the Madhya Pradesh VAT Act.
Source:- Notification No.F-A3-2/2010/1/V(40) dated 31 March, 2010 read with Notification No.F-A3-2/2010/1/V(41) dated 31 March, 2010
Entry tax rate change :- Effective from April 1, 2010, the Government of Madhya Pradesh has revised the rate of entry tax on specified goods.
Source:- Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar (Sanshodhan) Adhiniyam, 2010 read with Notification No.F-A3-2/2010/1/V(46) dated 1 April, 2010