1.       The tax receipt target for 2009-2010 of the Sales Tax Department fixed at Rs. 31,346/- Crore has been achieved.

2.       Maharashtra has become the first State in the country to provide through Internet the electronic services like acceptance of registration application, filing of return and payment of taxes, application of refund, acceptance of audit report and application for declarations under Central Sales Tax Act.

3.         Proposal for allowing

a)     transaction wise assessment,

b)     provision for grant of part refunds,

c)      make intimation and some interest orders non appeallable,

d)    Amendment to provide quarterly return for newly registered dealers.

4.  E facility of filing electronic returns will also be provided under the Profession Tax Act and Luxury Tax Act.

5.       Penalty provision for non-issuance of bills made more stringent.

6.       For grant speedy refunds it would be mandatory to record the TIN of the purchaser on the Tax Invoice.

7.       A simple composition scheme for the builders and developers. Under this scheme, one percent VAT would be payable on the contract price of flats mentioned in the agreement of sale. However, such builders and developers will not be eligible for set off under the VAT Act. This scheme shall come into force for the agreements registered after 1st April 2010.

8. (a)         The  turnover  limit  for  audit  under  section  61  of VAT Act will be increased from      Rs. 40 lakhs to Rs. 60 lakhs.

8(b) It will also be mandatory for all the dealers covered by package scheme of incentives, to file the audit report.

9.       Small dealers filing six monthly returns  will now have to the tax within 30 days in lieu of 21 days.

10.     Tax exemption on specified grains and food items will continue till 31st March 2011.

11.     Raisins, currants and tea  to continue  the concessional VAT rate of 5% up to 31st March 2011.

12.     Blood Transfusion apparatus rate of tax reduced from 12.5% to 5%.

13.     Solar lanterns included under Non-conventional energy sources working on solar energy which are exempted from VAT.

14.     Solar or battery powered  vehicles rate of VAT reduced from 12.5% to 5%

15.     Camphor ,Dhoop,  lobhan and ‘pan Kath’ is exempted  them from levy of VAT.

16.     Rate of tax on hairpins reduced from 4% to 1%.

17.     Sabudana Chivada, Chana-chur and Khandvi have been included in the list entry of Farsan  attracting a lower rate of VAT.

16.     To encourage entrepreneurs who bring innovations to the agriculture sector, vermi compost beds made from HDPE fabrics are being exempted from tax.

18.     To reduce the economic burden on farmers to a certain extent,  Cotton seed oil cake have been made tax free.

19.     Tax on sales of hand made laundry soaps manufactured by KVIC units will be exempt from tax.

20.     One time tax proposed on Auto Rickshaws and black-yellow meter taxis.

Note: Wherever tax exemptions have been introduced, expanded they are applicable only up to 31st March 2011 and may come to an end if GST is introduced before that date which seems to be distant probability.

Compiled by:

CA LALIT MUNOYAT


B.Com.(Hons.), CS, FCA, DISA

[email protected]

98201 93508

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0 Comments

  1. CA Anand B. Chandak, Washim says:

    The State Budget is good enough to collect revenue however the State Finance Minister should consider small enterpurners problem while dratfting the Budget. One of the welcome amendment made by the Hon. Finance Minister is that charging of VAT on Sale of Property this will increase the collection of tax to the state as there is huge transaction in properties now a days. Best Luck to the Hon. Finance Minister for the F.Y. 2010 – 11.

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