1. On Line facility to Dealers:-
(a) It is proposed to provide a new system in which a dealer purchasing goods will be able to verify online tax paid by the selling dealer.
This will bring transparency in the tax system and also curb tax evasion.
(b) Facility of refund payment through ‘ECS’ will be made available to the dealers.
(c) Declarations under Central Sales Tax Act, such as ‘C’ forms, etc. will also be issued in electronic form.
2. G.S.T.:- In the recent budget the Central Government has announced 1st August 2012 to be the operational date for Goods and Services Tax Network. Maharashtra has actively participated in its development .
3. Fees for filing late returns and Penalty for late registration:-
(a)A late fee of Rs. 5,000 in place of penalty of Rs.5000/- for late filing of return is proposed. A dealer will not be able to upload his return without payment of this late fee.
(b) Penalty is also proposed for failure to apply for registration within the prescribed time
4. Strictness for not attending the hearing or asking adjournment at pending appeals:
(a) If the appellant fails to attend or seeks adjournment on three occasions, he shall have to pay a minimum amount of 15 per cent of the disputed amount or Rupees 15 crore whichever is less, for the stay to continue.
(b) Also in order to reduce the number of appeals filed by Government to High Court, provision similar to section 268-A of the Income Tax Act is proposed.
Increase in Tax base through increase in rate or bringing new commodity under Tax net.
1. Propose to levy tax at 5 per cent on sales of furnishing cloth at the last point of sales
2. Proposed to levy tax at 12.5 per cent on sales of Beedi
3. Proposed a levy of tax of 5 per cent on sale of LPG for domestic use
4. Plaster of Paris is used in interior decorations. Rate of tax on this is proposed to be enhanced from 5 per cent to12.5 per cent.
5. Purchase tax is proposed on purchases of cotton and oil seeds from unregistered persons. The rate of purchase tax will be same as that on sales and set-off will be available as prescribed in the rules.
6. Motor Vehicle Tax is levied on cars and jeeps as per their price. Presently it is as follows:-
Price range | Rate | Proposed |
vehicles costing up to Rs. 7 lakh | 7% | Rate shall be increased by 2% on Petrol vehicles and by 4% on Diesel vehicles |
vehicles costing between Rs. 10 to 20 lakh | 8% | |
vehicles costing above Rs. 20 lakh | 9% |
Thus rate would be
Price range | Rate if it is petrol vehicle | Rate if it is Diesel vehicle |
vehicles costing up to Rs. 7 lakh | 9% | 11% |
vehicles costing between Rs. 10 to 20 lakh | 10% | 14% |
vehicles costing above Rs. 20 lakh | 11% | 15% |
Logical change in Rate of Tax to remove difficulty :-
(a) On dry fruits :-The rate of tax on cashew nuts is 12.5 per cent, while other dry fruits are taxed at 5 per cent. Different tax rates on dry fruits are inconvenient to trade. Therefore, I propose a single rate of 5 per cent for all dry fruits from 1st April, 2012
(b) TDS on Works Contract by unregistered dealers.
There is a provision to deduct 4 per cent TDS on Works Contract executed by unregistered dealers. General rate of composition on construction work is 5 per cent. Hence, TDS rate in this case is proposed at 5 per cent
(c) Semi processed meat and fruits sold in sealed containers or in frozen state are liable to 5 per cent tax. But similar vegetarian foods are liable to 12.5 per cent tax. Hence, Proposed reduction in tax on these to 5 per cent.
Reduction in set-off on Branch Transfers outside the State:- Reduction in rate of Central Sales Tax by Central Government from 4 per cent to 2 per cent has adversely affected State revenue. Therefore, as a revenue protection measure, I propose to reduce set off in case of branch transfers outside the State by 4 per cent instead of 2 per cent from 1st April, 2012.
Tax Concessions.
Existing | Proposed | ||
Presently some essential goods such as rice, wheat, pulses and their flour, turmeric, chillies, tamarind, gur, coconut, coriander seeds, fenugreek, parsley (suva), papad, wet dates, solapuri chaddars and towels are exempted from tax upto 1st March 2012. And tea is presently taxable at lower rate of 5%. | Exempt up to 31-3-2012 | exemption extended on these upto 31st March 2013 Lower rate of 5 % tax on tea will also continue upto 31st March 2013 | |
Rate of tax on cotton yarn | 5% | proposed reduce to 2 per cent | |
Tax rate on writing boards and pads, examination pads, black, white or green boards, drawing boards, drawing charcoal, erasers, foot rulers, stapler, glitter pen, sketch pen, pencil leads, oil pastels and envelopes | 12.5% | proposed reduce to 5 per cent | |
Rate of tax on Machineries and equipments used in poultry industry ( To promote poultry industry in the State) | 12.5% | proposed reduce to 5 per cent | |
Tax rate on adult diapers, sanitary napkins, raincoats, safety helmets, ribbons, bow and kajal, articles made from bamboo and rock salt. | 12.5% | proposed reduce to 5 per cent | |
Concession in Motor Vehicle Tax to CNG vehicles | Proposed to reduce the tax rate by 2 per cent for each of the slabs, on purchase of a new motor vehicle fitted with CNG kit by the manufacturer. The new tax rate will be 5 % for vehicles costing upto Rs.10 lakh, 6 % for vehicles costing between Rs. 10 to 20 lakh and 7 % for vehicles costing above Rs. 20 lakh | ||
è Exemption to oil and oilcake manufactured and sold by Tel Ghani certified by Khadi and Village Industries Board, upto a turnover of rupees 20 lakhs in a year.
è Full exemptions to ‘Purak Poshak Ahar’ supplied to Anganwadis under the integrated child development scheme
è It is proposed to fully exempt battery operated vehicles from Motor Vehicle tax.
Other Proposals
Entry Tax
Proposed to levy entry tax of 12.5 per cent on Natural Gas. Full set-off on Natural Gas will be available under MVAT Act, if it is resold. In any other case, set-off will be available in excess of 3 per cent.
Profession Tax.
(a) The tax liability of a person applying for new enrolment under Profession Tax Act, for unenrolled periods will be restricted to eight years prior to the year of initiation of proceedings or application for enrolment.
(b) Provision for revised return and a provision for late fee of Rupees 1000 instead of penalty of Rs. 300 for late filing of return is proposed.
Sugarcane Purchase Tax :-
The State Government has declared a scheme for exemption from Sugarcane Purchase Tax to sugar factories establishing co-generation units.
Stamp Duty:- In order to simplify the Stamp Duty structure, the present slabs for charging of Stamp Duty on conveyance deeds of immovable properties is proposed to be replaced by a simpler rate of 3 per cent for areas falling under Grampanchayats, 4 per cent for areas under Municipal Councils and Influential Areas and 5 per cent for other urban areas including Municipal
Substantial old dues of electricity duty are outstanding.
Majority of the dues are disputed in courts of law. In order to settle these disputes and recover outstanding dues quickly, I propose an Amnesty Scheme. In this scheme, if the outstanding electricity duty as on 31st December, 2011, is paid in one installment, it is proposed to waive 50 per cent of interest accrued thereon, subject to withdrawal of pending court cases. This scheme will be in operation from 1 st April, 2012 to 30 th June, 2012.