TN revises sales tax rates, expects to rake in Rs 3,900 cr
PrintListen to this Article
The Tamil Nadu government today revised sales tax rates applicable to commodities such as tobacco products and electronic goods such as cellular phones and LCD/LED panels, as well as on textiles and textile products.
Effective July 12, the revised rates are expected to bring in an additional tax revenue of Rs 3,900 crore per year, the government said in a statement.
The state government has decided to take various revenue augmentation measures to increase the revenue resources, it said. "As the earlier government has left a huge debt of over Rs1 lakh crore, the state government has to mobilise additional resources to adhere to the fiscal norms and also to implement the new welfare schemes successfully."
After the revision, LCD and LED panels, DVDs and CDs, cellular phones, iPod, iPhone and their parts, would attract a sales tax of 14.5 per cent, as against four per cent now.
The value-added tax (VAT) on commodities has been increased to 14.5 per cent from 12.5 per cent at present. However, agricultural implements, fertilisers and insecticides were exempted from four per cent tax by moving these commodities from first schedule to fourth schedule of the Act.
The state government has also imposed five per cent tax on textiles and textile products which were earlier exempted from sales tax while the central government was collecting additional excise duty (AED). The Centre has already abolished AED and permitted the state to levy sales tax.
"As cone yarn is already taxed at five per cent in the present dispensation, taxing textiles will get the benefit of input tax credit as a part of the VAT chain. Andhra Pradesh has also brought textiles and textile products under VAT," the government said. However, hank yarn and handloom fabrics would continue to get tax exemption.
The new structure also lowered the turnover limit for tax exemption that applies to edible oil dealers. The existing system has led to rampant tax avoidance by misusing provisions on turnover-based tax exemption. The turnover limit has been reduced from Rs 500 crore to Rs 5 crore to bring in the bigger dealers under tax net.
Tobacco and tobacco products would be taken out of the VAT tax rate of 12.5 per cent and included in the non-VAT commodities to be taxed at 20 per cent. Chewing tobacco, snuff and cheroot, which were earlier exempted from tax would also be brought under 20 per cent tax net while beedi and beedi tobacco, which were also exempted earlier, would be included under VAT schedule to be taxed at 14.5 per cent.
The registration fees on agreements relating to deposit of title deeds, lease deeds, instrument of power of attorney to sell immovable properties have also been increased, to generate an expected additional revenue of Rs 300 crore per annum. (Business Standard)
Category : VAT | Comments : 0 | Hits : 1088
A division bench of Justices AS Dave and Biren Vaishnav of Gujarat High Court has ruled that misconduct proceedings cannot be initiated against advocates, chartered accountants, and cost accountants under the Gujarat VAT Act. The bench also ruled that the respective professional bodies — Bar Council, ICAI, and ICWAI— are the authorities empowered to prosecute these professionals for any misconduct. The decision came in response to a petition filed by Pravin Modh against the miscon...
As a measure to tackle the increasing rate of obesity, Kerala is all set to introduce the first ever 'fat tax' to be levied on junk and fast food items. In his budget speech, Kerala's Minister of Finance proposed a tax of 14.5% to be levied on junk food including items like burgers, pizzas, sandwiches, doughnuts, tacos, etcetera. While eating out at fast food restaurants like McDonald's, Pizza Hut, Domino's and others will become more expensive in Kerala, the recently elected...
Delhi government today said VAT collection in the ongoing financial year has crossed Rs 20,000 crore, close to its revised target of Rs 21,000 crore. The government in its first Budget had set Rs 24,000 crore as the target but later, on the grounds of unsteady collection, it was toned down to Rs 21,000 crore. VAT Commissioner SS Yadav said total tax collection in the current financial year crossed Rs 20,000 crore mark on March 25 and that the amount was Rs 2,000 crore higher than last fina...
In a first for the city, Delhi government's Value Added Tax department has decided to bring all big and small players on e-commerce platforms under the scanner to check evasion of tax. A notification is under way to make it mandatory for all online portals like Flipkart and Snapdeal to file tax returns quarterly. All dealers operating through these platforms will also be expected to file their returns. Failure to do so will evoke action. The department has prepared a detailed set of gu...
The Delhi government provided a big relief to the city traders by allowing them to carry forward input tax credit to next financial year and extending the last date of submission of R-9 forms for last three years, up to June 30. The government's move comes with an aim to simplify business for the traders in the national capital, an official release said . As per the existing provisions, a trader can carry forward the excess tax credit during the same year only. The traders perceiv...
Comments