Changes in MVAT Act 2002 by the budget.
A. CHANGES IN TAX RATES: MVAT:
1.The exemption to wheat, rice, pulses and their flours, turmeric, chillies, tamarind, gur, coconut, cumin seeds, coriander seeds, fenugreek and parsley (Suva), papad, wet dates, solapuri chadders and towels which was to expire on 31.03.2012 will be continued till 31.03.2013.
2. The exemption of fabrics except furnishing cloth mentioned in Schedule ‘A’ (list of tax-free goods) to continue. However, furnishing cloth will be taxed @5% on last point.
3. Concessional rate of 5% to continue on tea till 31.03.2013.
4. Aviation Turbine Fuel (ATF) sold from Maharashtra except from Mumbai and Pune which was hither to taxed @4% will be now taxed at the rate of 5% w.e.f.01.04.2012.
5. Levy of Purchase Tax is proposed on unregistered dealer (URD) purchases of cotton and oil seeds @5% which will be eligible for set-off as per applicable rules.
6. Exemption from VAT on Biris removed. Biris will be taxed @12.5%. Unmanufactured tobacco sold under brand name will also be taxed @20%.
7. Exemption from VAT on LPG for domestic use is removed. It is proposed to be taxed @3%.
8. The rate of tax on plaster of paris is proposed to be enhanced to 12.5% from 5%.
9. Rate of tax reduced on cotton yarn from 5% to 2%.
10. The rate of tax on dry fruits is made uniform. w.e.f. 01.04.2012 all dry fruits will be taxed @5%. Thus, exemption available to Raisins and currants upto 31.03.2012 will stand withdrawn w.e.f. 01.04.2012.
11. Entry Tax is proposed on Natural Gas @12.5% with full set-off in case of resale and in other cases subject to retention @3%.
12. Tax rate on writing boards and pads, examination pads, black, white or green boards, drawing boards, drawing charcoal, erasers, foot rulers, staplers, glitter pen, sketch pen, envelopes, etc. is proposed to be reduced to 5% from 12.5%.
13. Rate of tax on semi-processed and ready to cook vegetarian food is proposed to be reduced to 5% from 12.5%.
14. Exemption from tax is proposed on oil and oilcake manufactured and sold by Tel Ghani certified by KVIC provided the turnover does not exceed Rs.20 Lakhs.
15. ‘Purak Poshak Ahar’ supplied to Anganwadis under the Integrated Child Development Scheme is made exempt from tax.
B. SET-OFF RULES:
The rate of retention in case of Branch Transfer outside the State will be 4% instead of 2% effective from 01.04.2012.
CA PAWAN JAJOO