VALUE ADDED TAX
• Scheme
to recognize and honour five diligent tax payers in each of Bengaluru based
divisions and three each from VAT divisions other than Bengaluru.
• Module
for transportation of goods that will allow transporters to upload the details
of goods being transported online for hassle-free movement of goods.
• Development
of mobile application for the benefit of small dealers.
• Issue
of online refunds to the eligible dealers.
• Online
service of statutory proceedings using digital signature certificates.
Reliefs
• Tax
exemption on paddy, rice, wheat, pulses and products of rice, wheat and Ragi
Rice (Processed Ragi) for one year.
• Tax
exemption on Jowar Roti, Ragi Roti, Aluminium house hold utensils and Crude Oil.
• Tax
exemption on handmade paper, hand-made
paper boards, and handmade paper products
manufactured and sold by a
dealer recognized by the Karnataka Khadi and Village Industries
Board.
• Tax
reduction on Cotton from 5% to 2%.
• Tax
reduction from 14.5% to 5.5% on Chatnipudi, prepared from: Groundnut, Nigar seeds, Copra,
Bengal gram, Garlic, Flax seeds and fried gram.
• Tax
reduction from 14.5% to 5.5% on Office files made of paper and paper boards, Adult Diapers,
certain articles of nickel and titanium, Hand operated Rubber sheet making
machines, set top boxes for viewing Television content, Surgical; gowns, masks,
caps and drapes of single use made of Non-woven fabrics, Multi-Media Speakers,
Helmets and LED Bulbs.
Additional Resource
Mobilization Measure
• VAT
increased from 14.5% to 20% on
aerated and carbonated non-alcoholic beverages.
• Increase
in rate of tax on petrol from 26% to 30% and diesel from 16.65% to 19%.
• Entertainment
Tax increased from 6% to 10% on Multi System Operators (MSOs) and Direct to
Home service providers (DTHs).
Rationalization
Measures
• Amendment
to Sub-section 3 of section 10 of KVAT Act, 2003, to bring in clarity so as to
have effect only from 1.4.2015.
• Amendment
to Section 10 of the KVAT Act, 2003 to assess the dealers who are statutorily
required to upload but fail to upload such purchase and sales statement by
disallowing input tax.
• Provide
for submission of Form VAT 240 electronically and to levy penalty for
non-compliance under KVAT Act, 2003.
• Amendment
to Section 38 to include cases relating to the dealers who file incorrect and
incomplete returns.
• Amendment
to Section 72 of the KVAT Act, 2003 to levy of penalty under the circumstances
of filing revised returns resulting in tax liability of more than 5%.
• Amendment
to entry 4 of VI schedule of the KVAT Act, 2003, to include only structural
works contract of iron trusses, purlines and the like.
AGRICULTURAL
INCOME-TAX
Relief
• Abolition
of Agricultural Income Tax with effect from 1st of April 2016.
CENTRAL SALES TAX
Rationalization
Measures
• Restriction
of input tax claim charged in excess of two percent on purchase of cigarettes
relating to interstate sale of cigarrates against ‘C’ form.
• Rescinding
of notifications issued under the CST Act, 1956 reducing the rates to 1% which
were issued before the introduction of VAT.
PROFESSIONS TAX
Rationalization
Measures
• Formation
of Committee headed by an Additional Commissioner of Commercial Taxes to study
and submit a report to simplify the Profession Tax Act.
• Amendment
to section 5 to issue registration certificate within 3 days.
LUXURY TAX
Relief
• Amendment
to section 3-E to provide relief to class of facilities in hospitals.
Rationalization
Measure
Amendment to section 7-A to
empower authorities to re-assess escaped tax by including
types of luxuries
chargeable to tax which were not specified in that section.
ENTRY TAX
Rationalization
measures
• Reduction
of mandatory payment of disputed tax and other amounts to 30% to get stay from
First Appellate Authority
and Karnataka Appellate Tribunal and to facilitate dealers to file
appeal to the first
appellate authority electronically.
BETTING TAX
Rationalization
Measure
• Filing
of returns and payment of tax electronically.
credit to Mr. Gurudatta Shenoy
GDS Associate
Advocates
& Tax Consultants