Madhya Pradesh Budget 2012-2013-Proposals

Madhya Pradesh Budget 2012-2013-Proposals

1.       Registraion:-(a)Waiver of Registration fee- It is proposed to waive registration fee if Registration is applied on-lie

(b) Increase of Registration fee- Fee would be Rs.1000/- (presently Rs.500/-) if registration applied manually,

Fee is being increased to just avoid manual applications & promote use of online facility

2.       Extension of utilization of I.T.R- 

(a)    It is proposed to allow excess of Input Tax credit(input Tax Rebate ITR)  to adjust against Interest & penalty, presently excess of ITR can be adjust to tax liability

(b)   ITR would be allowed to Bidi dealer against VAT paid on purchase of Tendu patta

(c)    To promote timber merchant, ITR would be extended against VAT paid on Input for manufacture of Furniture

(d)   Coal & other raw to used in generation & distribution of Electricity would qualify for ITR

(e)   Facility of total rebate on goods being used in production of kapasya (Sakri) Khali at par with Soya de-oiled cake and VAT reduction at source on tilli like Soyabean, musterd & cotton

3.       Transportation of Goods-Facility to release confiscated goods even after penalty imposition on the basis of cash guarantee or bank guarantee during transport checking and release of such security after first appeal.

4. Provision for rehearing of the cases decided on ex-parte basis/best judgment basis

5. Extension of Tax Base:-

(a)  Proposed to tax  Sugar & Textile for VAT @5%

(b) Proposed to start taxing Petrol & Diesel and natural Gasat multistage as other items are being taxed

(c) Proposed to tax  Electricity generation & distribution for VAT @5%

(d) Additional Taxation by the rate of VAT on CEMENT  and Tendu patta leaves if transported by road

6.  Reduction Tax Rate:-

(a) VAT on Petrol shall be reduced to 27%

(b) VAT on A.T.F. shall be reduced to 23% at Bhopal & Indore airport and 13% at other locations

(c) Exemption of VAT on Plant & machinery, equipments & tools to be used in Generation & distribution of Power & electricity 

(d) Exemption from VAT tax on the following items:- (i) pipes being used in driirrigation (ii) Ghamela Tasla, Tagari made from plastic

(e) VAT tax reduced from 13% to 5% :- (i) Khakhra (ii) Khas-Khas (iii) All types of CFL/LED & tubes (iv) PCC Poles (v) Adult diaper & sanitary napkins (vi) photography paper (vii) Aluminum circle & sheets

Entry Tax

à Exemption from entry tax on metal casting, ferrous and non-ferrous metal and alloy, iron and steel being used in manufacturing industry to make engineering industry more competitive in the state.

à To restructure entry tax similar to VAT taxes. Structure of VAT taxes will be as following:

(a) Goods mentioned in Madhya Pradesh VAT Act Schedule I and Schedule II, part I will be exempted from entry tax.

(b) Rate of entry tax will be 1 percent for goods 
mentioned in Schedule I, Part- II of VAT Act but cotton and cotton waste, yarn will be exempted from tax and there will be no change on entry tax on iron and steel, coal and LPG.

(c) Rate of entry tax will be 2 percent on the goods mentioned in Schedule I, Part III and IV of VAT Act but there will be no change in the rate of entry tax on petrol, diesel, pan masala, gutka, cigarette and bidi.

Professional Tax

Exemption limit raised from ` 1,20,000 to ` 1,50,000 for professional tax to provide relief to low income employees and exemption from profession tax even to small scale businessmen and industrialists having turnover upto ` 10 lacs per year.

Stamp Duty

è Stamp duty and panchayat fees payable on documents of security mortgage being reduced from 0.5 to 0.25 percent.

è Stamp duty on documents of guarantees of education loans being reduced from 0.5 percent to ` 100 per document.

è Stamp duty on contract papers regarding land development in residential colonies being reduced from 3 percent to 1 percent.

è Registration duty rate to be maximum ` 1000 on document of release of mortgages.