Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: articles on VAT and GST in India :: cpt :: VAT Audit :: ACCOUNTING STANDARDS :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: empanelment
 
 
« General »
  Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of ₹ 500/- and ₹ 1000/- (Updated as on November 30, 2016)
 Cases for tax scrutiny will be selected by machines
 Time to revisit 1997 direct tax rates, says P Chidambaram
 Lok Sabha passes Bill to tax black money deposits post demonetisation
 Last day to pay property tax with old notes
 Income tax department asks IDS declarants to pay tax by 30 November
 Why PM Narendra Modi must beware of the breathtaking Arthakranti tax
 Japanese firms seek easing of restrictions on funding in India
 Tax on black money: How the cookie will crumble
 Income tax officials say raids on jewellers based on 'credible intelligence' proving fruitful
 Exchange window being misused, government forced to reduce limit to Rs 2000, says Arun Jaitley

Taxes worth Rs 910 cr in budget
June, 05th 2009

The Maharashtra budget for 2009-10 announced today many incentives for the aam aadmi a move clearly aimed at the state elections that are due in October but also proposed wide-ranging taxation measures on the so-called luxury and high-end products that is projected to net an additional Rs 910 crore.

The budget, presented by State Finance Minister Dilip Walse-Patil, projected a budgetary deficit of Rs 113.66 crore the first deficit budget in three years.

Electronic goods, cigarettes, liquor and high-end cars bore the brunt of the fresh taxation measures. In a significant move, Patil removed the ceiling of Rs 25 crore on the stamp duty on corporate mergers and acquisition deals.

The value-added tax (VAT) on mobile phones, cordless phones, video phones, video and digital cameras has been increased from 4 per cent to 12.5 per cent. Though the minister did not propose any changes in the 7 per cent motor vehicle tax (MVT) on four-wheelers up to Rs 10 lakh, he increased it for vehicles up to Rs 20 lakh to 8 per cent and those above Rs 20 lakh to 9 per cent.

According to the provisions of the MVT Act, tax on vehicles owned by companies or imported in India will be collected at double the rate of the vehicles owned by individuals, or manufactured in India.

Similarly, the stamp duty on contract for advertisement, rights of telecasting films, copy rights etc. has been doubled. At present, the stamp duty is levied at the rate of Rs. 2.50 per Rs 100 value of the contracts.

Predictably, liquor attracted the ministers special attention. While the sales tax on all kinds of liquors including Indian Made Foreign Liquor (IMFL), country liquor and imported liquor has been increased from 20 per cent to 25 per cent, the excise duty on IMFL has been increased Rs 160 per litre to Rs 180.

The sales tax on tobacco products, excluding bidi and unmanufactured tobacco, has been increased from 12 per cent to 20 per cent.

The finance minister, however, reduced the tax on the space industry, energy saving equipment, medical equipment etc. Items like pressure vessels, reactors and chemical steerage used in satellite and rocket building will now attract VAT at the rate of 4 per cent instead of 12.5 per cent earlier.

Solar energy equipment like solar panels, solar cookers, solar heaters etc have been exempted from VAT and the duty on compact fluorescent lamps has been reduced from 12.5 per cent to four per cent.

In a special incentive to the hospitality sector, hotels and restaurants up to three-star ratings will now attract VAT at the rate of 5 per cent instead of the earlier 8 per cent.

The minister has also proposed to reduce the VAT on medical equipment like scalp veins, stethoscopes, dialysis instruments etc from 12.5 per cent to 4 per cent.

Imitation jewellery will also now attract VAT at the rate of just 1 per cent instead of earlier 4 per cent.

One of the major highlights of the budget was a special provision of Rs 11,915 crore for infrastructure projects like roads, bridges, railway, airports, ports and irrigation projects to celebrate the states golden jubilee year.
 
BUDGET HIGHLIGHTS

State's first deficit budget in the three financial years

Estimated budgetary deficit to be Rs 113.66 crore

VAT on mobile phones, cordless phones, video phones, video and digital cameras has been increased from 4 per cent to 12.5 per cent

High-end cars to attract more motor vehicle tax (MVT). Vehicles up to Rs 20 lakh to 8 per cent and above Rs 20 lakh to 9 per cent

Stamp duty on contract for advertisement, rights of telecasting films and copy rights to be increased from Rs 2.50 to Rs 5 per Rs 100.

Ceiling of Rs 25 crore on the stamp duty levied on M&As of companies is removed

Increase in both sales tax and excise duty on liquor

The sales tax on tobacco products increased from 12 per cent to 20 per cent

VAT on selected items used in space and satellite industry reduced from 12.5 per cent to 4 per cent

Solar energy equipment exempted from VAT and CFLs to attract VAT at 4 per cent

Hotels and restaurants up to 3 star ratings will now attract VAT at the rate of 5 per cent instead of earlier 8 per cent

VAT on medical equipment like scalp veins, stethoscopes and dialysis instruments from 12.5 per cent to 4 per cent

The imitation jewellery will also now attract the VAT at the rate of just 1 per cent instead of earlier 4 per cent

Special provision of Rs 11,915 crore for infrastructure projects like roads, bridges, railway, airports, ports and irrigation projects to celebrate golden jubilee year of state's formation

While presenting the interim budget earlier, the minister had proposed a plan outlay of Rs 26,000 crore. That has been increased by Rs 11,915 crore to give a push to the infrastructure sector.

The government has also proposed a provision of Rs 7578 crore to completely remove the backlog in the irrigation sector in the state. Now, there is no financial backlog in the irrigation sector in the state, the minister said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions