Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: cpt :: ACCOUNTING STANDARDS :: empanelment :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: VAT RATES :: form 3cd :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4%
 
 
VAT (Value Added Tax) »
  Filing of reconciliation return in form 9 for the year 2016-17
 Govt may send notice to 162 companies; ask for VAT returns
 Cenvat Credit Is Not Income Liable To Be Taxed
 Cos wanting to claim VAT refund on employees' foreign stay can get professional help
 Regarding disposal of pending form DVAT 04 & 07 Form Applications
 Disposal of pending Form DVAT 04 & Form DVAT 07 applications: regarding
 Cenvat Credit Rules, 2017 III Part
 VAT phased out in TS
 Cenvat Credit Rules, 2017 II Part
 Cenvat Credit Rules, 2017 – Part I
 How much do you know about VAT as a taxpayer?

Maharashtra mulls purchase tax to replace local body levy
July, 01st 2014

The beleaguered Congress-Nationalist Congress Party (NCP) government in Maharashtra, which faced a strong opposition from traders during general elections, has proposed to introduce a new tax to abolish the controversial local body tax (LBT) in 26 municipal corporations, excluding Brihan Mumbai Municipal Corporation. According to the proposal drafted by the finance and sales tax departments, the tax will be part of the VAT (value-added tax) Act after some modification.

The new tax, which will be a form of purchase tax, will be linked to the five VAT schedules, namely zeo per cent , one per cent, five per cent, 12.5 per cent and 25 per cent and will be in small percentage. The government proposed to keep a uniform rate as demanded by traders. The tax, which was discussed with the traders just four days ago, will likely be imposed from November 1.

Chief Minister Prithviraj Chavan last week announced that the government was in the process of bringing out an alternate tax to repeal LBT.

NCP has been quite aggressive in pressing for abolition of LBT in the run-up to the assembly election, while the Bharatiya Janata Party had threatened to launch agitations opposing the same.

LBT was introduced in Maharashtra in 2010 in a phased manner beginning with tier-III cities by scrapping the octroi duty (tax levied on the entry of goods into municipal limits of Maharashtra by the municipal corporations of the state since 1965). In 2013, LBT was also applied to tier-I and tier-II cities, except Mumbai.

The government had proposed returning to octroi or introducing a three per cent surcharge on VAT. These proposals, however, were opposed by the traders.

A senior official told Business Standard: “Under the new tax regime a separate challan will have to be paid for its payment in VAT department. The same tax will be transferred to the respective municipal corporation automatically. Hence, the autonomy of the municipal corporation is here to stay as is their revenues. The exempted categories in VAT such as sugar, textiles and food grains will not attract the new tax.”

Only companies in the municipal corporation area and those registered with VAT department would pay the new tax, added the official.

“The exemption will be according to VAT rules, where the turnover is up to Rs 10 lakh. Besides, penalty and interest will be also be according to VAT Act. Separate annexure for purchase returns will be filed with VAT returns,” the official said. However, various bodies representing the trading community have opposed the new tax proposal. They said the government was again getting into one more format for assessment that was not acceptable.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

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