Maharashtra State Budget 2012

Highlights of Maharashtra State Budget 2012

1.     MVAT rate amendments as under effective from 01.04.2012

a.     Semi processed and ready to cook vegetarian food – Reduced rate from 12.5% to 5%

b.     Bamboo and Bamboo products – 5%

c.      Rock salt -5%

d.     Safety Helmets -5%

e.     Umbrella and Raincoats except garden umbrella – 5%

f.       Dry fruits excluding raisins and currants – 5%

g.     Raw, semi cooked, semi processed, readymix and ready to cook preparations, sold in sealed containers excluding ready to eat foods -5%

h.     Sanitary napkins & Adult diapers –rate reduced from 12.5% to 5%

i.        Plaster of Paris – Rate increased from 5% to 12.5%

j.       ATF Sales in places other than Mumbai and Pune – Rate increased from 4% to 5%

k.     LPG for domestic use –Rate increased from Nil to 3%

l.        Cotton Yarn –Rate reduced from 5% to 2%

m.  Education materials – Rate reduced from 12.5% to 5%

n.     Machinery to poultry industry – Rate reduced from 12.5% to 5%

o.     Tea – Concessional rate of 5% to Continue till 31^st March, 2013

p.     Furnishing Cloth -5% Vat at last point sale as against existing exemption from VAT

2.     Reduction in set-off available as per rule 53(3) :In case of branch transfers effected outside the State has been increased from 2% to 4% w.e.f. 01.04.2012

3.     Following changes will be effective on passage of the bill in Vidhan Sabha

a.     Entry tax @ 12.5% levied on Natural Gas (The Levy is subject to complete set off in case where Natural Gas is resold and set off in excess of 3% in other cases)

b.     5% Purchase tax levied on purchase of cotton and oil seed from unregistered persons / dealers.

c.      Motor vehicle tax increased by 2% in case of petrol cars and jeeps and 4% in case of diesel cars and jeeps.

d.     Motor vehicle tax reduced by 2% on new motor vehicles where the manufacturer has fitted the CNG Kit.

e.     Motor Vehicle tax fully exempted on battery operated vehicles.

f.       Late fee of  ` 5000 for delay in filing VAT returns as against existing penalty of  ` 5000

NOTE: The dealers will not be able to upload the returns after the due date, till this late fee is paid.

4.     Rare of Tax deduction at source – TDS related to Works Contract

a.     Increased from 4% to 5% on works contracts executed by dealers not registered under Maharashtra Value Added Tax Act, 2002.

5.     Other Important Points

a.     Penalty proposed tor failure to apply for registration within prescribed time in case appellants fail to attend or seek adjournment on  3 occasions, they will be required to pay the lesser of 15% of disputed amount or INR 15 Crore, for the stay to continue.

b.     Time limit for preservation of books of accounts increased from 3 years to 8 years with retrospective effect

c.      Late fee of ` 1000 for delay in filling Profession Tax Return as against existing penalty of ` 300