1.0 Introduction :- Maharashtra Deputy Chief Minister presented the State budget for the year 2011-12 on 23 March 2011. The changes effected in various regulations shall be effective from a date to be notified unless otherwise specified. Considering a satisfactory rise in the sales tax revenue by 26% over earlier year, it is proposed to retain VAT rate on goods covered under schedule E @ 12.5%. The budget proposes certain amendments under the Maharashtra Value Added Tax Act, 2002 (MVAT Act) in respect of the following, which will be notified in due course.
2.0 Maharashtra Value Added Tax Act, 2002 (MVAT Act, 2002)
2.1 Proposal to Extend the Existing Tax Exemption / Concession till 31 March 2012 In Respect Of Following Goods
|Sr.||Types of Goods||VAT Rate w. e. f.1 April 2011|
|1||Rice, wheat, pulses, and flours thereof, chillies, turmeric, gur, tamarind, coconut, coriander, fenugreek, parsley (suva), papad, wet dates, Solapuri Chadars and towels, Liquefied Petroleum Gas (LPG) for domestic consumption||0%|
|3||Aviation Turbine Fuel sold at small airports except Mumbai and Pune (Entry No.11 ofSchedule D)||4%|
2.2 Proposal to Reduce Rate of Tax on Following Goods
|Sr.||Type of Goods||Tax Rate|
|1||Dry fruits (other than raisins, currants and cashews)||12.50%||5%|
|2||Vada-Pav (sold in restaurants)||12.50%||5%|
2.3 Proposal to Increase Rate of Tax on Following Goods
|Sr.||Type of Goods||Tax Rate|
|1||All Declared Goods||4%||5%|
|2||Carbonated soft drinks||12.50%||20%|
|4||Sales made under section 8(5) to electricity generating, transmission, distribution units, telecom industry, defense and railways.||4%||5%|
2.4 Proposal To Grant Exemption On Following Goods
2.5 Tax On Sale Of Telecasting Rights
It is proposed to tax telecasting rights of various entertainment and sports events @ 5%, by including the same in the list of intangible goods.
2.6 Turnover Limit Of Composition For Small Bakery Raised
Presently, small bakeries with turnover upto Rs. 30 lacs can avail composition scheme. Considering the increase in general price levels, this turnover limit is proposed to be raised from Rs. 30 lacs to Rs. 50 lacs.
2.7 Tax On Liquor Other Than Wine
First Point Levy- With Set Off
− It is proposed to levy tax at first point (on manufacturer or importer) @ 50 % of actual sale price of liquor or @ 25% of Maximum Retail Price (MRP), whichever is lesser.
− Set-off will be available to the manufacturers.
Subsequent Sale- No Set Off
− Tax rate @ 20 % shall be charged on actual sales in hotels of 4 star category and above.
− In other cases, i.e. hotels below 4 star category, bars & restaurants and clubs, the rate of tax shall be 5%.
− No Set-off will be available to these bars, clubs, hotels and restaurants.
2.8 Relief To Retailers In Composition Scheme
Retailers under composition scheme were required to have 50% of turnover of commodities liable to tax @ 4% in order to avail concessional composition rate. With general increase in base rate tax from 4% to 5%, the rate 4% mentioned in composition scheme is now being made 5%. This will enable retailers to avail the concessional rate of 5% under the composition scheme.
2.9 Relief to Sugar Factories
2.10 No Tax on Fabrics and Sugar
Due to changes in the Additional Duties of Excise in the recent Budget of Central Government, Fabrics and Sugar which are in the list of tax-free goods will become taxable. However, the State budget proposes to keep these goods as tax-free.
2.11 Waiver of Interest and Penalty to Soap Industry Certified By Khadi & Village Industry Board
2.12 Stern Action against Hawala Dealers
Dealers issuing / procuring false invoices or those making false claims would be punished with imprisonment of 1 year which can extend to 2 years on conviction.
3.0 BOMBAY STAMP ACT, 1958
3.1 Amendments to Stamp Duty on Stocks and Capital Market
It is proposed to charge a uniform stamp duty of 0.005% on all the transactions of securities, futures, delivery and non-delivery based transactions for clients as well as on own account.
3.2 Stamp Duty on Market Value of Transfer of Tenancy Rights
In order to reflect the true value of the transfer of long held tenancy rights of house properties at prime locations, it is proposed that these transactions will now be liable for stamp duty at their market value.
4.0 STATE EXCISE DUTY
Increase in the State Excise Duty In Case Of Liquor, etc.
|Sr.||Type of product||Proposed Excise Rate|
|1||Country Liquor||Rs. 95 per proof liter|
|2||Foreign Liquor||Rs. 240 per proof litre|
|3||Mild Beer||Rs. 33 per bulk litre|
|4||Fermented Beer||Rs. 42 per bulk litre|