25 March 2010

Proposed Amendments to MVAT in State Budged 25-03-2010

The following are some of the changes proposed by Finance Minister in his budget speech delivered on 25th March, 2010. These are only changes which are of importance in daily use. I shall publish detailed amendments shortly.

1. Audit limit under Section MVAT Act, 2002 to be raised to Rs.60 lakhs. Effective date not spelled out in the speech,

2. Dealers filing half-yearly return to pay VAT taxes within 30 days from end of the period instead of 21 days,

3. Penalty for non-issue of sales bill to be made stringent,

4. Proposal to issue TIN of purchaser mandatory on Invoices issued under MVAT Act,

5. Composition scheme for Builders and Developers. Builders and Developers to pay MVAT @ 1% of the agreement price of flat. Not to be entitled to claim input tax credit,

6. Addition to Farsan list: including Sabudana Chivada, Chana-chur and

7. Relief in Luxury Tax to Small Hoteliers, No Tax on rent upto Rs. 750.

8. Tax exemption on Rice, wheat, pulses, and flours thereof, chillies, turmeric, gur, tamarind, coconut, coriander seeds, fenugreek, parsley (suva), papad, wet dates, Solapuri Chadars and towels extended to 31st March, 2011.

9 Rates of taxes on raisins, currants and tea @5% to continue till 31st March, 2011,

10. Tax concession to Hairpins, Blood Transfusion apparatus,
vehicles operated on battery or solar energy.

11. Solar Lanterns, Camphor, Dhoop, Kath (catechu), H.D.P.E Fabric
Vermi Compost bed, Cotton seed oil cake - Tax free.

The finance minister has also proposed other changes in VAT Rates

In order to effectively control illegal money-lending in the State, Maharashtra Money-Lending (Regulation) Act, 2007 has been drafted and bill is likely to be introduced in the budget session-2010 of State Assembly.

Government proposes to establish two new Government Medical Colleges, one in Raigad District and another in Nandurbar District. All necessary funds will be made available for this.