Highlights of Karnataka state budget 2015-16, and new proposals on taxes.
TAX PROPOSALS (Changes in VAT exemption limits and others)
Goods and Services Tax:
• Necessary steps to prepare Trade and Industry and department for smooth transition to Goods and Services Tax (GST) System.
• Revenue collection target fixed at Rs.46,250 crores for 2015-16.
Value Added Tax:
• Successful implementation of online uploading of purchase and sales details.
• Increase in registration limit from Rs.7.5 lakhs of annual turnover to Rs.10 lakhs.
• Tax exemption on paddy, rice, wheat, pulses and products of rice and wheat continued for one more year.
• Tax exemption on Footwear costing upto Rs.500 per pair, certain solar PV panaels and Solar invertors, Handmade products like Floor Mats, Table Mats and Runners, Utility Bags made of Banana Fibre excluding Rubberized Banana Fibre products.
• Tax reduction from 14.5% to 5.5% on Wick stoves, Mobile phone charger, M-sand, M-sand manufacturing machinery/ equipment, Industrial cables namely XLPE Cables, Jelly Filled Cable, Optical Fibre Cable and PVC Cable, Pre-Sensitized Lithographic Plates used in printing industry, Packing materials like Pallets, Box Pallets and other Load Boards, pallet collars, Additional Resource
• VAT on Cigarettes, Cigars, Gutkha and other manufactured tobacco hiked from 17% to 20%.
• Sales tax rate increased by 1% on Petrol and Diesel.
• Provision for single First appeal against re-assessment for several tax periods of one financial year.
• Enhancement of period for disposal of appeal by KAT from 180 days to 365 days from the date of stay order.
• Provision to claim input tax credit of previous tax periods in the returns, filed during subsequent tax periods by amending sub section 3 of section 10 of KVAT Act, 2003.
• Provision to limit input tax credit to the extent of output tax paid on a particular commodity by amending section 11 of KVAT Act, 2003.
• Provision to deduct tax at source, at applicable rate, on goods purchased by Government department or Local Authority or Local body or others.
• Granting permission for Special Accounting Scheme is to be brought under 'Sakala.'
• Enabling dealers to file an appeal electronically before the first Appellate Authority and to receive orders electronically.
• Enabling the dealers to upload the details of CST statutory forms which will be linked to the turnover declared by the dealers in their returns.
Profession Tax Act:
• Profession Tax exemption to senior citizens who have attained age of 60 years and above.
• Professional tax exemption to persons drawing salary/wages less than Rs.15,000/- in a month.
Posted 1 year, 11 months ago by CA Pulkit Sharma
No response yet, be first to reply.Your Reply:
You need to be logged in to reply.