Rates of VAT proposed to be increased with effect from 1 April 2010

  • VAT rate of 4% proposed to be increased to 5% on all goods except declared goods
  • VAT rate of 12.50% proposed to be increased to 13.50%
  • VAT rate of 12.50 % on tobacco products proposed to be increased to 15%

Tax Concessions

  • VAT exemption for 3 years proposed for new hotels in 100 selected tourist destination
  • Tax rate proposed to be reduced from 12.50 % to 5 % on masala powder mixtures, macaroni, sports trophies, shields and medals, all kinds of scrap, electric generators of less than 15 KVA, railway concrete sleepers, school bags costing up to Rs.200/-
  • VAT exemption on paddy, rice, wheat, pulses and products thereof proposed to be extended till March 2011

Other Key Proposals

  • Total Turnover limit for VAT audit increased from Rs.40 lakhs to Rs.60 lakhs
  • E-filing of returns and electronic payments of tax to be introduced
  • Threshold limit for registration increased from Rs. 2 lakhs to Rs. 5 lakhs
  • Annual turnover limit for Composition Scheme increased from Rs.15 to Rs.25 lakhs
  • Levy of VAT on tobacco products on MRP basis
  • Option for dealers in medicines to pay tax on MRP basis on sale of other goods
  • Relief of payment of interest, if sales tax arrears are paid before 30th June 2010
  • Re-introduction of Advance Ruling mechanism for seeking clarification

More Under Goods and Services Tax

0 Comments

  1. sandeep shinde says:

    Sir,

    Please suggest me whether sweet lassi, curd, flavoured milk, butter milk is taxable in Karnataka for local & Interstates Sales

  2. Sunil Kumar says:

    Please I need to know the taxes chargeable for Computer Mapping Job for financial year 2011-12 & 2012-13 (Service tax & TDS) for a company.

  3. usha says:

    please specify the VAT rate % in karnataka for the following machines:
    1. Chain saw, Brush cutter, Earth auger, Mist blower, Hedge trimmer.

  4. shekina says:

    hello
    i wanted detailed information Taxation over automation products , sice i am doing a project on it

    thanks & Regards
    Ms.Shekina.Kandi

  5. K C SINGH says:

    Dear Sir,

    Please suggest me, the rate of tax for Exhust Fan with motor used in Green Houses for Hardening of Plants, for the local sales and Interstate sales

  6. badri says:

    Sir,
    I want to know what is the differnce between works contract and order for sales wheather orders taken in usual cource in the business premises amounts to works contract and its tax rate in karnataka for the year 2011-12 on gold or silver jewellery

  7. SHEELA says:

    PLEASE LET ME KNOW THE CURRENT (2011) VAT PERCENTAGE FOR DIAMOND SEGMENTED CIRCULAR SAW BLADE AND DIAMOND SEGMENTS. THESE ARE USED FOR CUTTING STONES.

  8. Sheetal Patil says:

    Sir,

    Please suggest me whether sweet lassi, curd, flavoured milk, butter milk is taxable in Karnataka for local & Interstate sales.

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