18th
February, 2014
Highlights
of Karnataka Budget Speech - 2014-2015 presented on 14th February 2014 and amendments proposed in various
Commercial Tax & Other Laws:
Karnataka
VAT Act, 2003:
·
Levy tax at 5.5% on liquor sold by bar and
restaurants operating in urban areas and by clubs, lodging houses and star
hotels, as last point tax to capture tax on value addition.
·
Tax on scented areca nut powder other than
mixtures, to be reduced from 14.5% to 5.5%.
·
Exemption on paddy, rice, wheat, pulses and
products of rice and wheat to be continued for one more year from April 2014.
Ø
Other Proposals:
·
Increase in the registration limit from Rs. 5
Lakhs to Rs. 7.5 Lakhs of annual turnover.
·
Exempt works contractors from compulsory
registration
·
Increase
in the minimum sale value for obtaining e-SUGAM from Rs.20,000 to Rs.25,000.
·
Filing of annual statements by dealers in order
to avoid disputes in the information provided in electronic returns
·
To take suitable administrative measures in order
to enable dealers to rectify mistakes in the returns which have no tax
implications
·
Waiver of penalty in case of small dealers who
have no tax liability who opt for cancellation of their registration.
·
Single appeal to be filed for several tax periods
of one financial year in case of appeal to the Karnataka Appellate Tribunal against
re-assessment.
Karnataka
Tax on Luxuries Act:
·
Increase in the minimum daily rent for levy of
luxury tax on accommodation provided in a hotel from Rs. 500/- to Rs. 750.
Karnataka
Tax on Entry of Goods Act:
·
Filing of monthly returns by dealers and deemed
acceptance of such returns as under VAT Act
·
Exemption from entry tax on ethanol brought for
mixing with petrol
Karnataka Stamp Act:
·
Stamp duty exemption for alternate sites
allocated by BDA consequent to de-notification of the land.
·
Reduction in Stamp Duty on Award relating to
movable properties from 5% to rates ranging from 0.25% to 0.75% on slab basis.
·
Stamp Duty to be levied at uniform reduced rate
of 2% on all Joint development agreements and their consequent Powers of
Attorney.
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Note :- Full credit goes to my Friend shri Gurudatta Shenoy , ADVOCATE & TAX
CONSULTANT who has provided it