Dayal R Kundani

Maharashtra State Budget – FY 2012 -2013

Key proposals

1. Reduction in set-off available in case of branch transfers effected outside the State has been increased from 2% to 4% w.e.f. 1 April 2012.

Now effecting stock transfers from the State of Maharashtra to depots outside the State would entail higher cost.

2. Rate of tax deduction at source has been increased from 4% to 5% on works contracts executed by dealers not registered under the Maharashtra Value Added Tax Act, 2002.

3.  Amendment in VAT rates proposed do not have any Major impact on inputs

E-Refund and Forms:

4. VAT Refunds to be made through ‘ECS’

5. Declaration forms (example Form C) to be issued in electronic form

6. New online system developed for purchaser to verify the tax paid by the seller

Penalty Provisions

7. Mandatory late fee of Rs.5,000/- for delay in filing VAT returns as against existing penalty of Rs.5,000.

(Returns will not be allowed to be uploaded after the due date, till this late fee is paid.

Appeals & Assessment

8. In case appellants fail to attend or seek adjournment on 3 occasions, they will be required to pay the lesser of 15% of disputed amount or INR 15 crore, for the stay to continue

9. Time limit for preservation of books of accounts increased from 3 years to 8 years with retrospective effect.

10. Retrospective change in definition of motor spirit and petroleum products

Profession Tax

11. Late fee of Rs. 1,000 for delay in filing Profession Tax return as against existing penalty of Rs.300

Other Proposals

12. GSTN [GST Network] has been proposed to be operational by 1st August 2012

GSTN will implement common PAN based registration, return filing and payment of taxes on a shared platform.

PAN will be used as a common identifier in both direct & indirect taxes

13. A flat rate of stamp duty has been proposed on conveyance deeds of immovable property.

The above is extract of from the Budget speech of Government of Maharashtra From Budget presented in March 2012 for Financial Year 2012-13.  Notification to give effect of are yet to be issued .

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0 responses to “Maharashtra Budget – FY 2012 -2013 – Key proposals”

  1. Prashant Jain says:

    what is the limit of turnover for MVAT audit for F.Y. 2012-13. whether it is Rs. 60 lacs or Rs.1 crore

  2. Kumar says:

    Dear sir/Madam let me know about what is the limit of sales for Sales tax Audit for F.Y.2012-13

  3. Jatin says:

    Please let me know what is the limit for VAT AUDIT LIMIT for the F.Y 2012 – 13

  4. Ibrahim says:

    Is Penalty of Rs.5000/- payable for both VAT & CST ie. Rs.10,000/- ?

  5. Chirag says:

    Thanks Alot . Its really usedfull.

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