Published On : Wed, Mar 11th, 2015

VTA keenly awaiting announcement for withdrawal of LBT in coming state budget

VTA LogoVidarbha Taxpayers Association (VTA) had sent pre budget memorandum addressed to Devendra Fadnavis – Chief Minister and Sudhir Mungantiwar – Finance Minister suggesting various issues to be incorporated in state budget to be announced soon.

J. P. Sharma president of VTA said we are eagerly looking forward the announcement for withdrawal of LBT by Finance Minister in coming week’s budget. Although CM has various times assured withdrawal of LBT from April 1, 2015; but its official declaration will only bring certainty. VTA from day one has consented that revenue loss from withdrawal should be leveled by marginal increase in any other state indirect tax like VAT or similar.

Sharma also requested to the state government that in order to achieve homes for all, real estate needs to be brought under affordability limit; hence appropriate relief should be granted on its stamp duty and VAT.

Tejinder Singh Renu, secretary of VTA informed that we are obliged as for the first time VTA has received acknowledgement from State Finance Minister for receipt of VTA’s suggestions in state budget and we highly appreciate this gesture of the state government.

Renu said VTA is constantly requesting state government to reduce rate of interest for delay in payment of corporation house tax to 12% from existing 24%. Other Revenue Departments like Income Tax charge 12% u/s 234, Sales Tax 18%, Service Tax 18%, Service Tax for small service provider 13%, Excise 18% and TDS 18%. This clearly demonstrates that even revenue departments don’t charge interest more than 18% and property tax is charged by service department i.e. Municipal Corporations and as such they shouldn’t charge mammoth interest rate of 24% under any circumstances. Trust this budget brings some change on this topic.

FM ack to VTAVTA also suggested that Composition scheme for under-construction flats bought between 20 June 2006, and 31 March 2010 should also be brought at 1%, again to avoid multiple litigations along with amnesty scheme which will result is handsome increase in state revenue for this period which has already caused too many litigations. Likewise reduction in electricity rates for Vidarbha is suggested to the state government, which shall attract investments in the region and shall also curb the ongoing injustice with this region producing electricity and still paying more, cause major harm to the industries of the region.