Below is an extract of significant tax proposals by Bihar, Chhattisgarh, Delhi, Goa, Himachal Pradesh, Jammu and Kashmir, Maharashtra, Meghalaya, Rajasthan and Uttarakhand States in their State Budget announced in March, 2011:

Bihar

  • Rate of VAT on goods specified in Schedule III is proposed to be increased from 4% to 5%. The declared goods continue to be taxed at 4% through a new schedule III A.
  • Rate of VAT on goods currently taxable at 12.5% is proposed to be enhanced to 13.5%

Chhattisgarh

  • Professional Tax is proposed to dispensed with.

Delhi

  • VAT is proposed to be levied at the rate of 5% on industrial textiles such as canvass belt, filter cloth etc.
  • VAT is proposed to be removed on bicycles having MRP up to Rs.  3500.
  • VAT on Sanitary Napkins costing up to Rs.  20, Kerosene-Stoves, Lanterns and petromax and their spares are proposed to be exempt.
  • VAT on unmanufactured tobacco, bidis, and tobacco used in manufacture of bidis and hooka tobacco is proposed to be levied at the rate of 12.5%.
  • Rate of VAT on sweetmeats and namkeens is proposed to be increased from 5% to 12.5%.

Goa

  • Rate of VAT on Tobacco products including Cigar and Cigarette is proposed to be increased from 12.50% to 20%.
  • Rate of tax on Petroleum products such as Aviation Spirit, Aviation Turbine Fuel, High Speed Diesel Oil, Light Diesel Oil, Motor Spirit ! petrol etc. is proposed to be increased from 20% to 22%.
  • Luxury tax on Room Accommodation is proposed to be levied between 5% to 12%.
  • Rate of tax on Declared Goods under CST Act falling under Schedule B except LPG for domestic use is proposed to be increased from 4% to 5%.
  • Rate of Composition for Hotel Restaurants, Eating House etc. is proposed to be increased from 4% to 5%.
  • Infrastructure tax is proposed to be levied between 1% to 2% on purchase ! construction of independent Bungalows; house in Gated communities ! Housing Complexes and flats in apartments.
  • One time Infrastructure tax on purchase of new luxury cars at the time of registration is proposed to levied between Rs.  10, 000!- to Rs.  1 Lakh.
  • Infrastructure tax of Rs.  50,000!- per annum is proposed on Barges, Heavy Construction Equipment’s, and Earth Moving Machines, Vehicles and Equipment’s are used for mining or for any other purposes.
  • Duty Structure on IMFL rationalised as a revenue generating measure.
  • Surcharge, in addition to license fees, on bars and restaurants enhanced.
  • Rate of Road Tax enhanced by 1%.
  • Fees for transfer or sale of alcohol, spirits, grain spirit and all other spirits for the purpose of manufacture of IMFL, country liquor etc. is proposed to be increased from 0.5 to 2 per BL, and for High Bouquet spirit, concentrated scotch for the manufacture of IMFL or country liquor within the state, the rate is proposed to be increased from 0.5 to 3 per BL.
  • Application Fees for import of Beer! IMFL/Bottled Wine/Foreign Liquor is proposed to be increased from 4 to 5 per BL.

Himachal Pradesh

  • E-Return and E-Registration facility is proposed to be given to all the dealers in the state.
  • Facility of E-declaration is proposed to be made available to all the dealers and industries importing goods from other states so that entry at the check posts is smooth and least time consuming.

Jammu and Kashmir

  • Rate of VAT on Tobacco and Tobacco products is proposed to be increased from 13.50% to 25%.
  • Service Tax exemption is proposed on Installation of Poly Houses and Green Houses.
  • 100% subsidy of VAT component on micro irrigation systems i.e., Drip and Sprinkler Systems
  • VAT exemption on food grains for another one year.
  • VAT exempted on pesticides, insecticides and weedicides.
  • VAT remission for industry under packaged scheme of incentives extended for another year.
  • Following categories of services are proposed to be added to the existing list of 17 services which are taxed under schedule B of Jammu and Kashmir GST Act, 1962.

–           Services provided by commercial concerns in relation to new construction, repairs, alterations or restoration of buildings, civil structures or parts thereof

–           Services provided by way of TV and Radio programme productions

–           Services provided by the Architects

–           Services provided by the Interior Decorators

–           Services provided by the Chartered Accountants

–           Advertising Services by providing hoardings

Maharashtra

  • Rate of VAT on goods currently taxable at 12.5% remains unchanged.
  • Rate of Tax on Declared goods under CST Act is proposed to be increased from 4% to 5%.
  • It is proposed to issue declaration forms C/F under the CST Act electronically and use TINXSYS for the cross checking of the same.
  • It is proposed that payment of purchase tax on sugarcane shall be recovered every month out of sale proceeds from sugar at such rate as may be prescribed, instead of paying entire tax in the crushing season.
  • Full exemption of tax on certain essential commodities and domestic LPG is proposed to be extended for one year.
  • Fabrics and sugar continue to be tax free.
  • Concessional Rate of Tax on Tea @ 5% is proposed to be extended for one year.
  • Concessional rate on Aviation Turbine Fuel @ 4% sold from places in Maharashtra other than Mumbai and Pune districts is proposed to be extended for one year.
  • Prefabricated domestics biogas units will be tax free to promote non-conventional source of energy.
  • Full exemption on transfer of copyrights of films relating to their exhibition in theatres.
  • Rate of Tax on Dry Fruits (Except raisins, currants and cashew) is proposed to be reduced from to 12.50% to 5%.
  • Turnover Limit raised to Rs.  50 lakhs for Composition Bakery Dealer.
  • Tax on liquor other than wine is proposed to be levied at first point @ 50% on actual sale price but not exceeding 25% of MRP.
  • Tax on Carbonated soft drinks is proposed to be increased from 12.50% to 20%.
  • Tax on sale of Telecasting right of entertainment and sports events is proposed to be introduced and such sale would be taxable @ 5%.
  • Tax on sale of goggles is proposed to be increased to 12.50%.
  • Concessional rate of tax is proposed to be raised from 4% to 5% on sales to Electricity Generating, Transmission, Distribution units, Telecom Industry, defence and Railways.
  • Change is proposed in formulae for excise duty and MRP excluding VAT as well as in minimum rate of excise duty on country liquor, IMFL and Beer.
  • Uniform stamp duty of 0.005% is proposed on all transaction on stock and commodity exchange.
  • Stamp duty on marked value of transfer of tenancy rights is proposed to be introduced.

Meghalaya

  • Rate of VAT on goods currently taxable at 12.5% is proposed to be enhanced to 13.5%

Rajasthan

  • Kerosene sold through PDS exempted from VAT.
  • Turnover Limit raised to Rs.  60 lakhs for dealers who opt for composition.
  • Rate of tax reduced from 14% to 5% on cooked food supplied by outdoor caterers.
  • Exemption to Canteens runs by CRPF and CISF on the line of CSD canteen.
  • DTH and Cable TV exempted from Entertainment tax.
  • Full exemption from Entertainment Tax levied on Cinema Industry.
  • Rate of tax on Aviation Turbine Fuel raised from 14% to 20%
  • Rate of tax on Pan Masala, Tobacco and Tobacco products raised to 40%.

Uttarakhand

  • Stamp duty on purchase and sale of immovable property is proposed to be reduced from 6% to 5%.
  • For small and non AC restaurants VAT is proposed to be reduced from 13.5% to 4%.
  • Full exemption is proposed to be given from tax on handmade washing soap.

Source: Budget speech of the Finance Ministers of the respective States

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0 Comments

  1. shimpi says:

    hi
    can you explain me some more information about bihar vat rules & how we can levied it. its urgent because i am a dealer of mahindra’s vehicle

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