Opportunity to comply with the discrepancy noticed in online registration application within stipulated period.

Transcription

1 Current Proposed 1

2 Administrative Relief and Measures Opportunity to comply with the discrepancy noticed in online registration application within stipulated period. Provision for cancellation of registration if false documents are submitted is also being made. Returns acceptance order to be issued to dealers whose case is not selected for scrutiny but has filed returns within stipulated period. And shall be deemed to have been accepted after expiry of 4 years if no assessment notice issued. Provision on Advanced Ruling proposed to be made. Amnesty scheme for Profession Tax enrollment holder. Tax liability and penalty will be restricted to previous three years. Amnesty scheme for tax administered by Sales Tax for dues upto 31st March, 2005 subject to full tax payment, the interest and penalty shall be waived and for disputed dues from 1st April, 2005 to 31st March, 2012 subject to full tax payment, and 25% interest payment under VAT Act, balance dues will be waived. Amnesty scheme under Industrial Policy 2013 for closed and un-revivable units to be implemented afresh. Establishment of Advance Ruling Authority for speedy disposal of disputed questions under Sales Tax Laws. Implementations of SAP based Computer system in Sales Tax Department. Input Tax Ledger to be made available to the tax payer. Pilot Project will be started by Sales Tax Department for implementation of Digital Billing system. 2

3 Tariff Rate changes: Following commodities proposed to be exempted from VAT: 1. Warping and Sizing of Yarn for promoting the Textile Industry. 2. Mammography machines used for detection of breast cancers. 3. Retrofit kit fitted to vehicles for physically handicapped. 4. Bamboo Products excluding Bamboo furniture. 5. Buses operated on Battery and Hybrid fuel. 3

4 Tariff Rate changes: Proposed Increase/new tax rates under VAT for the following commodities: Sr. No. Commodity Existing Rate Proposed Rate 1. Sterile Water 12.5% 5.5% 2. LED Tubes 12.5% 5% 3. Pyrolysis Oil 12.5% 5.5% 4. Steel Wire Mesh, Barbed Wire and Chain links 12.5% 5.5% 5. Pencil Box, Stapler pins, Dusters, Gum and Gum- sticks, tape dispenser and all types of files used by student 12.5% 5% 6. Coconut hair oil sold in pack upto 500 ml 5% 12.5% 7. Terry-towels Exempt 5.5% 8. Cotton Seed 5% 2% 9. Sale of used vehicles by banks and financial institutions 12.5% 5.5% 10. Tea 5% 5.5% 11. Processed Sweet Corn 5% 5.5% 12. Medicinal hair oil 5% 12.5% VAT rate proposed to be increased from 5% to 5.5%, excluding declared goods. 4

5 Composition Scheme: 1. Turnover limit for composition to retailers under the MVAT Act proposed to be increased from Rs.50 Lakh to Rs. 1 Crore. 2. The turnover of tax free goods under Bakery Industry proposed to be excluded for computing the turnover for composition. 3. VAT composition tax rate proposed to be enhanced from 5% to 8% for hotels and restaurants having turnover of food and non-alcoholic drinks in the previous year exceeding Rs. 3 Crore. 5

6 Set off: 1. No set off available on purchase of Petrol and Diesel including entry tax paid. 2. Local handset mobile purchased and sold outside the state of Maharashtra will be eligible for set off to the extent of CST liability on those sales. 3. Passenger motor vehicles will be eligible for set off to the extent of output tax on lease of vehicles. 6

7 Other proposed changes: 1. Fair market value concept proposed to be introduced for VAT. 2. More than one revised return proposed to be allowed to be filed till due date for filing audit report under the VAT Act. 3. Credit of TDS can be transferred to a sub-contractor. 4. Mandatory registration for employer who are liable to deduct TDS. 5. Exemption from Levy of Sugarcane Purchase Tax for the year to the Sugar Factories which export sugar as per Government policy. 6. Profession Tax exemption to the armed personnel of CRPF and BSF. 7. Exemption from late fee to the Government aided educational institution for e-filing of Professional Tax returns. 8. Levy of Entry Tax on Marble and Granite slabs. 9. Increase in Lottery Tax on the draws of Lotteries. 10. Logistic Hubs will be established to promote the Logistic Industry and Levy of CST will be exempted on the interstate sales effected from the Logistic Hubs. 11. Motor Vehicle Tax enhanced on two wheelers and three wheelers owned by individual. Tax to be based on engine capacity - upto 99cc - 8%, 100cc to 299cc 9%, 300cc and above 10%. Institutional and Imported Vehicles to be subjected to double the rate of tax. 7

8 Contact Us Mumbai, India Chennai, India Jash Chambers, 3rd Floor, 7A, Sir P.M. Road, Fort, Mumbai Fax No , Narain Chambers, M. G. Road, Vile Parle (E), Mumbai Fax No Brindavan, Old No. 23, New No. 13, Mc Nichols Road, Chetpet, Chennai / Mob Vadodara, India Dubai, UAE Bengaluru, India Delhi, India C/ , Shree Siddhi Vinayak Complex, Faramji Road, Vadodara Suite #17.06 Dubai World Trade Centre, Shaikh Zayed Road, Dubai P.O. Box , 1st Floor, 7th Cross Domlur Village, Bengaluru , Tower 2, Pearl Omaxe, B-1, Netaji Subhash Place, Pitampura, Delhi Fax No Fax No Mob No / / Mob

9 Disclaimer This e-publication is published by CNK & Associates LLP, Chartered Accountants, India, solely for the purposes of providing necessary information to clients and associates. The information and analysis contained herein is of a general nature and is a preliminary overview of the key tax proposal set forth in the Finance Bill, It does not purport to offer any taxation, legal, economic or financial advice. Any business or commercial decision should be taken only after obtaining specific and comprehensive professional advice and cannot be based solely on this presentation. This e-publication is a proprietary material created and compiled by CNK & Associates LLP. All rights reserved. This document or any portion thereof may not be reproduced or sold in any manner whatsoever without the consent of the publisher. This analysis is not meant for public circulation and is not meant to be an invitation or solicitation of any kind. Whilst every care has been taken in the preparation of this e-publication, we do not take responsibility for any inadvertent errors. 9