Published On : Tue, Jun 10th, 2014

VIA organizes Discussion on Maharashtra State Budget and Tax Proposals

Nagpur News : VIA Tax & Corporate Law Forum organized a programme on “Discussion on Maharashtra State Budget and Tax Proposals” by eminent and renown CA Ashok Chandak, Past President of ICAI & an Authority on indirect Tax held on Monday, 9thJune 2014 at VIA hall.

The programme covered all the changes proposed in sales tax, profession tax and allied state tax laws. The discussion aimed to create awareness amongst the industry and business to ensure better and timely compliances.
He began by highlighting the revenue of the State Government which has increased to Rs. 1,10,500 Crores in 2014 as against Rs. 30,000 Crore approx in 2005.

He informed the gathering about the turnover limit for mandatory registration under the sales tax is proposed to be increased to Rs. 10 Lacs as against prevailing limit of Rs. 5 Lacs. Even though the limit is merely doubled as against increase in revenue by more than 3.50 times since 2005, it is still higher than the limit otherwise prevailing in other states.

He expressed his displeasure for the delay in the refund issue procedure followed by the State Government. For around 5 Lacs dealer, the refund issued is only around Rs. 4600 Crores during 2013-14, he informed the gathering.

He very aptly distinguished the term “Late Fee” and “Penalty” after the high court judgement persuant to which the sales tax has incorporated the word “late fee” for delay in filing the sales tax return. He welcome the budget proposal for reduction in the late filing fee to Rs. 2,000/- if the delay doesnt exceeds 1 Month.

He also expressed his pleasure over the deemed cancellation of assessment order proposed to be adopted in the budget against ex parte assessment order made in case of non filing of the return. It will reduce the burden of the dealer, he opined.

From left to Right: Ashok Chandak, Naresh Jakhotia, Prafull Doshi & Rohit Agrawal.

From left to Right: Ashok Chandak, Naresh Jakhotia, Prafull Doshi & Rohit Agrawal.

He also explained the changes proposed in the early assessment application to commissioner.

He wholeheartedly welcomed the intimation of business audit results made mandatory in the budget proposal. It will result in reducing the trouble and inconvenience caused to the dealer by the name of business audit, he stated.

He also covered a problematic change proposed in the budget for separate assessment for more than one type of return filers. Earlier, consolidated assessment was there and now if 3 returns are to be filed by the dealer, he has to undergo 3 assessment. It would consumed more time and energy, he expressed.

He also informed the audience about the State proposal to review all the notification issued under the CST Act. He asked the dealer to keep themselves the position after the review of the notification which are more than 300 as of now.

He also covered in his presentation the changes in rate proposed in the composition scheme for retailers under which dealer with turnover up to Rs. 50 Lacs are only covered. He highlighted the proposed composition scheme and advised dealer to opt for the rate of 1% or 1.50% whichever is beneficial to them.

He raised serious objection against the proposal of not granting stay on demand arising for want of declaration under the CST Act. It would create lot of trouble and the proposal lack logics, he briefed the audience.

He also informed the audience about the tax collection at source widening proposal in the budget.

He welcomed the proposal to increase the VAT audit limit to Rs. 1 Crore from present limit of Rs 60 Lacs. However, stock transfer would also be included in the turnover of sales for working out the turnover of Rs. 1 Crore, he cautioned the audience.

He very well covered the concept of check posts which is going to be activated now under the VAT laws and the problem and inconvenience which the industry may face as a result of this.

The speaker, CA Ashok Chandak mentioned about the concession in luxury tax, tariff up to Rs. 750 per day is presently exempted from luxury tax. This limit has been enhanced to Rs. 1000. Tariff exceeding rupees one thousand but up to Rs. 1500 is proposed to be taxed at 4%. Tariff exceeding Rs. 1500 would be taxed at 10%.

He also enlightened the audience about the enhancement in Professional Tax limit for employees. Minimum salary limit of Rs, 5000/- for liability under Professional Tax Act was fixed five years back. The limit is now proposed to Rs. 7500/-. This will benefit approximately seven to eight lakhs low wages earners and employees, he informed.

At the outset, floral welcome of CA Ashok Chandak was done by Prafull Doshi, President – VIA. Summing up and vote of thanks was given by Rohit Agrawal, Hon. Secretary-VIA. The programe was conducted by Naresh Jakhotia, Convener, VIA Taxation & Corporate Law Forum.
The programme was free & was open to all. Programme was followed by Questions & Answers where the participants asked many queries about proposed amendment in Sales Tax which was satisfactorily answered.