• Jun
  • 08
  • 2009

Maharashtra Govt Budget gives relief to small professional taxpayers; hikes VAT

Posted In GST | 13 Comments » Print Friendly and PDF

In its recent Budget Maharashtra State Govt. And its Finance Minister offered a mixed bag for the industry, trade and individuals subjected to professional tax. Keeping in mind not the economic slowdown but the forthcoming State Assembly polls in October, the Finance Minister, Mr Dilip Walse Patil has announced exemption of salary upto Rs 5000 from professional tax and also introduced an amnesty scheme for professional taxpayers. This scheme will come into force from July this year.

For small dealers the Minister announced a simplified VAT refund scheme for refund below Rs five lakh. It is hoped that the computerisation of the VAT Department may streamline the procedures for refund which will help all industries.

However, what may pain the industry is the hike in the VAT rate for goodies like high-end cars, liquor, cigarettes and electronic goods. The VAT rate on goods like mobile phones, cordless phones, video phones, video and digital cameras has been hiked from 4% to 12.5%.

Liquor has seemingly borne the brunt of the Minister as the the sales tax rate has been hiked from 20% to 25% on IMFL and imported both. The State Excise duty on IMFL is up from Rs 160 per litre to Rs 180 per litre. Tobacco is another product which could not have expected any favour from the Minister and the VAT in its case except bidi, has been hiked from 12 % to 20%.

However some of the mass goods like energy saving and medical equipment will now attract 4% tax in place of 12.5%. To promote non-conventional energy usage, the Minister has exempted from tax solar energy goodies like solar panels, solar heaters and solar cookers. Duty on CFL has been reduced from 12.5% to 4%.

For the services sector, the Minister has reduced the tax rate from 8% to 5% on restaurants and hotels upto three-star ratings. To give incentive to intimation jewellery industry, the VAT rate has been reduced from 4% to 1%.

To generate some revenue the Minister has doubled the VAT rate on contract for advertisement, rights of telecasting films and copy rights. At present, the stamp duty is levied at the rate of Rs. 2.50 per Rs 100 value of the contracts.

On the motor vehicle tax front, although the Minister did not touch the 7% rate for four-wheelers upto Rs 10 lakh but the rate has been hiked to 8% for vehicles upto Rs 8 lakhs and 9% for above Rs 20 lakh.

Experts have meanwhile criticised the Budget for no proposal on Octroi.


13 Responses to “Maharashtra Govt Budget gives relief to small professional taxpayers; hikes VAT”

  1. Pankaj Gade says:

    Can you provide me the list of Solar products[ like Street lights , solar fans etc]which are exempted from Sales Tax & Octri in Maharashtra ?

  2. Jainendra Ojha says:

    I need the Zonal Office address of thane. Pls help! the site seems to be encountering some issues…

  3. Nikhilesh says:

    There is confusion in medical equipment vat. Can someone send official link to the govt notification ? Are all the medical equipments and devices vat rates reduced to 4 % or only some of them ?

  4. Kiran Shah says:

    I am a professional practicing doctor, registered with medical council. I have also done post graduation in Law, LLM with a medical negligence as a specialist subject, but I am not registered as a council.
    I am currently practicing as a consultant for medico legal issue. I with a group of medico-legal consult provide a guidance in medico negligence cases which arrive with doctors.
    If any issue arise with doctors, like police complain or mob gathering we provided them guidance regarding all related issues, we would like to request you to please inform us whether above medico- legal service is applicable for any Service Tax ?

    Regards
    Kiran
    (MD, LLM)

  5. Winod Karve says:

    Dear Sandeep,

    I had sought Sales Tax registration in 2003 with an intention to start business, however, could not proceed any further. In short there was no production, sales, purchase or any business activity, nor any person employed. I cancelled ST registration after their notices around 2006. Now I have received a notice for default in payment of Profession Tax E.C dues with interest amounting to Rs. 36000!

    I shall be grateful if you could advise me the steps I should take in this regard to avoid this payment liability which in my opinion is irrational.

    Kind regards,
    Winod

  6. person suffering from permanent physical disability are exempt from profession tax in Maharashtra. For more details please refer our article on the same at the link given below:-

    http://www.taxguru.in/mvat/frequently-asked-question-on-profession-tax-pt-in-maharashtra.html

  7. naresh mody says:

    in maharashtra, does a person exempted from profession tax registration having physical disability over 80%?

  8. No Such exemption exist in Maharashtra.

  9. hasu says:

    I am a practising professional. I graduated from my professional course in July 2005. I am told that no professional tax registration was required till 3 years since the. Can u please confirm the same? Also, i have still not got any professional tax registration done and no amounts are being paid by me towards Professional Tax. Can u please advise in this regards?

  10. Arthur says:

    Pls. send me the latest Professional Tax Slab for Salaries paid in Maharashtra.

  11. I will soon upload all the PT forms in Excel Format applicable in Maharashtra.

  12. ganesh says:

    I want Maharashtra’s Professional tax Latest Form- 3A

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