COMMERCIAL TAXES DEPARTMENT : MAJOR CHANGES AND NOTIFICATIONS IN COMMERCIAL TAXES WITH EFFECT FROM 1st April’2016

AS NOTIFIED IN TIMES OF INDIA Newspaper ; Dated : 1st April’2016

I. AGRICULTURE INCOME TAX :

(1) Abolition of Agricultural Income Tax w.e.f 1.4.2016 and the Act is repealed

II. VALUE ADDED TAX

1. The following commodities have been exempted from tax from 1.4.2016 to 31.3.2017

(1)  Paddy; Rice and Wheat

(2) Pulses

(3) Flour and Soji of Rice and Wheat and Maida of wheat

(4) Ragi Rice (processed ragi)

2. The following commodities have been exempted from tax

(1) Crude Oil

(2) Handmade Paper and Handmade Paper Boards including handmade paper products manufactured and sold by a Dealer recognized as Khadi and Village Industry by the Khadi and Village Industries Commission or the Karnataka Khadi and Village Industries Board

(3) Aluminium household utensils other than Pressure Cookers and Cutlery

(4) Jowar Roti and Ragi Roti

3. Tax on the following commodities has been reduced to 5.5%

(1) Chatnipudi prepared from : Groundnut; Nigar Seed; Copra; Bengal Gram; Garlic; Flax Seeds and Fried Gram

(2) Office files made of paper and paper boards

(3) Adult Diapers

(4) Hand Operated Rubber Sheet making machine

(5) Set top boxes for viewing television content

(6) Surgical gowns; masks; caps; coats and drapes of single use made of non woven fabrics

(7) Helmets

(8) LED Bulbs

4. Tax on “Cotton” has been rreduced to 2%

5. The following goods have been notified as Industrial Inputs / IT products taxable at 5.5% VAT :

(1) Articles of nickel; titanium falling HSN Code 7505; 7506 and 8108

(2) Multimedia Speakers

6. Increase in VAT Rates :

(1) VAT increased from 14.5% to 20% on Aerated and carbonated non-alcoholic beverages whether or not containing sugar or other sweeting matter or flavour or any other additive including soft drinks and soft drink concentrates (whether in sealed container or otherwise).

7. Other Reliefs and Changes :

(1) Online uploading of form VAT 240 and penalty for non-complaince

(2) Assessment of incorrect and incomplete returns

(3) Disallowing of input tax credit for non-furnishing or furnishing incorrect and incomplete details of purchase and sales and restoration of such input tax other than penalty once such details are furnished or correct and complete details are furnished.

(4) Clarity to the Act with regard to claim of input tax credit not claimed for previous five tax periods and is prospective w.e.f. 1.4.2015

(5) Entry 4 of VI Schedule is applicable only to fabrication and erection of structural works of Iron and Steel including fabrication; supply and erection of iron trusses; purlines and the like.

(6) Levy of penalty under the circumstances of filing revised returns resulting in tax liability of more than 5%

III.  CENTRAL SALES TAX :

(1) Restriction of input tax paid on purchase of cigarettes in excess of two percent in respect of interstate sale of cigarettes against “C” form while calculating net tax payable.

(2) Rescinding of following notifications issued prior to introduction of VAT which provided for tax at 1% on interstate sales.

a) FD 177 CSL 2003(2); Dated 8.7.2003

b) FD 155 CSL 2004(22) ; Dated 31.7.2004

c) FD   91  CSL 2005(2) ; Dated 31.3.2005

IV. SALES TAX :

(1) Sales Tax Rate of 16.65% increased to 19% on Diesel.

(2) Sales Tax Rate of 26% increased to 30% on Petrol.

V. PROFESSION TAX :

(1) Issue of Registration Certificate within 3 Days.

VI. ENTERTAINMENTS TAX :

(1) Increase of Entertainment Tax from 6% to 10% to Multi System Operators and Direct to Home Service Providers.

VII. ENTRY TAX :

(1) Online filing of appeal to First Appellate Authority.

(2) Reduction of payment tax and other amount disputed to 30% to get stay before First Appellate Authority and KAT.

VIII. BETTING TAX :

(1) Online Payment of tax and filing of returns.

Source : TOI / 1st April’2016

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