« Top Headlines » Open DEMAT Account in 24 hrs  New Income Tax Act: ITR forms to be issued prior to FY28, says govt  GSTR-9C Explained: Turnover Limit, Due Date, Statement Format & How to Prepare It in Tally Prime (2025 Update)  Will Income Tax Department release new ITR forms by January 2026? Finance Ministry says this  The Government of India has strengthened MSME protection through strict payment rules, ensuring that Micro & Small Enterprises receive timely payments from buyers. Under the MSME Development Act (MSMED Act), 2006, buyers must make payments within:  ITR Refund Delays in India: Why They Happen & How to FastTrack Your Refund in 2025  ITR Refund Delay: From Bank Errors To Department Checks, 5 Big Reasons Your Refund Gets Stuck  Income Tax Slabs 2025: New Vs Old Regime; Which One Is Better For You For FY2025-26?  Seamless Integration: How Tally Prime Connects Businesses to the Digital Economy  Govt to notify new ITR forms, Income Tax Act 2025 rules by January 2026: CBDT chief  Digital Efficiency for MSMEs: The Tally Prime Advantage  5 Ways Tally Prime Reduces Cost and Boosts Productivity for Startups «  Concessional tax rate abolition may bring in more VAT... Parl Comm: CBDT should have SC, ST members... » Panel recommends octroi abolition in Maharashtra August, 22nd 2006 Profession tax in municipalities, additional VAT, property tax hike mooted -------------------------------------------------------------------------------- Impact of proposals By the imposition of profession tax Rs 1,000 crore could be collected. The VAT collection would be Rs 1,800 crore -------------------------------------------------------------------------------- The study group formulated by the Maharashtra Government for `Devising alternatives to octroi' in its report has recommended imposition of `profession tax' by Municipal bodies, the levy of additional value added tax (VAT) and increased property tax. The 22 municipalities in the State collect Rs 5,572 crore from octroi and levies annually. The study group has recommended abolition of octroi and imposition of new taxes to offset the loss. "The municipal bodies shall be permitted to impose and collect their own independent professional tax. Imposition of profession tax by the ULB's (urban local bodies) would require enactment of a separate Profession Tax Act. Municipal bodies would have an option to collect municipal profession tax themselves or to use the services of Sales Tax Department for the initial one or two years" the report says. The recommendations for changes in property tax are as follows: "The capital value based levy of property tax should also be made compulsory by statute and be enabled by suitable amendments of the respective municipal laws". The recommendations for VAT are: "The State Government shall on behalf of the municipal bodies levy an Additional VAT at the rate of 4 per cent on motor spirits and at the rate of 10 per cent of the current VAT rates on other commodities (of course, excluding "declared goods"). This Additional VAT levy will have to be fully VATable. These Additional VAT receipts will not form part of the Consolidated Fund of the State. The collection shall be kept in a separate account." Mr Subodh Kumar, Principal Secretary (Finance), Maharashtra and Chairman of the group, addressing the media on Monday, said that by imposing new profession tax, Rs 1,000 crore would be collected. The VAT collection would be Rs 1,800 crore and rest of the amount would be collected from hike in property tax. Thus, the losses of Rs 5,572 crore from the abolition of octroi and levies would be offset, he said. No decision has been taken on the recommendations of the report. Rahul Wadke