HIGHLIGHTS OF BUDGET

Finance Minister of Maharashtra presented the Budget for F.Y. 10/11 in

the State Assembly on 25/03/10.Following is the extracts from his
speech,

He has proposed some amendments to MVAT ACT & Rules in the

following sections for better implementation, some of the changes in
the act may be of procedural nature for the benefits of the dealers.

Proposed amendments to following sections:

1] Returns section 20: Amendment for newly registered dealers to file

qtrly returns instead of half yrly.

2] Assessment section 23: Transaction wise assessment is proposed.

3] Penalty section 29: Section will be amended.

4] Interest section 30: Amendment to section to make interest orders

non appellable.

5] Recovery section 35: Proposed amendment to the section to make

provisional attachment to protect revenue.

6] Refund Section 51: Provision to grant part refund.[suitable

amendment may be proposed in the section]

7] Vat Audit section 61: Turnover limit for the purpose of audit
increased from RS.40 Lakhs to Rs 60 Lakhs.Mandatory provision for All
Package scheme dealers to conduct the audit.

7] Accounts Section 63: The finance minister has made a comment

that intimation will be given dealer. [Not quite clear what exactly
expected]

e filing of returns under Profession Tax & luxury Tax introduced, date
will be notified.

More stringent provisions to penalize the dealers who do not issue

invoices / sales bills.

Mandatory provision for providing TIN NO of purchaser in the invoice to

expedite the refunds and cross check system.
Tax to be levied on sale of flats [As per the Supreme Court Judgment of
K.Raheja], Composition scheme for builders & developers to pay tax @
1% on the contract price of flats. Scheme will be applicable for the
agreements registered after 01/04/10.

Time limit for payment of taxes by half yrly dealers increased from 21
days to 30 days.

Luxury Tax: Exemption limit increased from 200 to 750/.No tax up to

tariff below Rs.750/.

Rate of tax 4% from 750 to 1200/

Rate of Tax 10% on Rs 1200 and above.

TAX CONCESSIONS:

Following concessions are declared up to 31/03/2011 or Up to

implementation of Goods and Service Tax.

1] Rice, wheet, pulses,& flours thereof,

chillies,turmeric,gur,tamarind,coconut,coriander
seeds,fenugreck,parsley [Suva],papad,wet dates,solapuri
chadars,towels,will be exempted.

2] Raisins, currants, and Tea will be liable to tax @ 5%.

3] Aviation turbine fuel sold at small airports will be liable to tax @ 4%.

Reduction in Tax Rate and Exemptions:

4] Rate of tax on Blood Transfusion apparatus reduced to 5% from

12.5%.

5] Tax on solar or Battery operated vehicles reduced to 5% from

12.5%.

6] Solar Lanterns exempted from tax.

7] Camphor, Dhoop, Lobhan, and Kath exempted from Vat.

8] Tax on Hair Pins reduced to 1% from 4%.

9] List of Farsan items will be expanded to include Sabudana chivada,

chana-chur, and Khandvi.

10] Vermi compost beds made from HDPE exempted from Tax.
11] Cotton seed oil cake exempted from tax.

12] Laundry soaps manufactured by KVIC units exempted.

13] One time tax on Auto Rickshaws and black yellow Taxis.

We request you to take note of the above proposed changes. The

changes will be effective from the notified date on approval from the
State Legislature.

We request to communicate for any further clarification on the same.

Thanks,

Suhas Padhye.