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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.

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Category : Goods and Services Tax (4825)
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Tags : Budget (1473) Income Tax Refund (198) mat (117) MVAT (668) profession tax (45) salary income (162) tax (194) Vat (176)

0 responses to “Highlight of Maharashtra State Additional Budget 2009”

  1. A G VINCHURKAR says:

    Pl inform whether professional tax is applicable on vehicles (students BUS)

  2. opgupta says:

    what is the definition of salary for the purpose of profession tax. what incomes are excluded for this purpose

  3. shraddha says:

    vat charge on plastic coated furniture(potty benches, study table,)

  4. abhishek kothari says:

    i want to know from when is the VAT reduced in the state of maharastra on immitation jewellery and what is the cst rate for selling immitation jewellert outside maharastra. kindly reply at the earliest

    • Sandeep Kanoi says:

      In my opinion CST will be same 2%. There is no provision for lower rate if VAT is at lesser rate.

      w.e.f. 01st July 2009 rate of MVAT on Imitation Jewellery, beads of glass, plastics or of any metal other than precious metals and parts and components thereof is 1%.

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