Highlight of Maharashtra State Additional Budget 2009

As Maharashtra braces up for polls and celebrates its golden jubilee year, it tabled a revenue-deficit budget for the year 2009-10 on 4th June 2009 that focuses on infrastructure development and social sector. The major highlights and changes proposed are noted below :

• Penalty for late returns under MVAT Act reduced to Rs.5,000/- from Rs.10,000/-.

• Exemption from Profession Tax for salary income upto Rs.5,000/- i.e increase from Rs.2,500/-.

• Simplified VAT Refund Scheme for the dealers with refund below Rs.5 Lakhs.

• Relief to Tax Payers not yet enrolled under Profession Tax.

• Amnesty Scheme under Profession Tax for transport permit holders.

• Tax Concessions and reduction in Taxes –
  – Tax reduced from 8 percent to 5 percent for Hotel dealers under Composition Scheme.
  – Tax concession to timber upto 31st March 2010.
  – reduction in tax rate on Cotton Ginning and Pressing machinery
  – Tax reduced on Solar energy devices and CFL
  – Tax reduced on Plastic mats and Agarbatti.
  – Domestic LPG stoves, imitation jewellery, Shikakai and Ritha to have lesser rate
  – Reduced tax on composting machines
  – Reduced rate of tax on Medical Equipment

• Increase in Taxes –
  – Rate of VAT on liquor increased from 20 percent to 25 percent
  – Rate of tax on tobacco products, cigarettes increased from 12.5 percent to 20 percent
  – Hike in rate of tax on mobile phones, digital cameras, video camera, gypsum board

• Four wheeler to pay price based tax under Motor vehicle tax.

• Restructuring of Stamp Duty on various agreements.