On 18 March 2016 Maharashtra Finance Minister Sudhir Mungantiwar presented the Annual State Budget 2016-17 in the state legislature.
While presenting the budget, which largely focused on agriculture sector, the finance minister added that 2016-17 will be observed as the Shetkari Swabhiman Varsh. He dedicated the budget to the baliraja or the farmer.
In the budget, Mungantiwar projected revenue mobilisation of 220810 crore rupees against revenue expenditure of 224454 crore rupees.
The revenue deficit, which was estimated at 3757 crore rupees by the end of 2015-16, had been revised to 9209 crore largely due to expenses incurred on drought relief in over 15000 villages. The minister also proposed an allocation of 25000 crore rupees for the farm sector after output declined 2.7% against a target of 6% growth.
Also, budget estimates anticipated a decline in the share of tax revenue in total receipts from 8.06 % in 2015-16 to 7.97% in 2016-17.
Key Highlights of Maharashtra Budget 2016-17:
• For the irrigation sector, the minister proposed an allocation of 7850 crore rupees against 7272 crore rupees in 2015-16.
• Registration documents to be uploaded online, which will eliminate the need to visit sales tax office for verification.
• Deemed acceptance of returns within Four years if returns filed and payment made & returns are correct.
• Assessment proceedings can be closed if a dealer agrees with observations of assessing officer or files revised return.
• Employer can transfer TDS credit to sub contractor.
• An amnesty scheme proposed under the Industrial Policy 2013 for closed and un-revivable units.
• An amnesty scheme for professional tax enrollment holders with a provision that tax liability & penalty will be restricted to the previous 3 years.
• Exemption of VAT proposed on warping and sizing of yarn for promoting the textile industry.
• Increase in the turnover limit for composition to retailers under the Maharashtra VAT Act to 1 crore rupees from 50 lakh rupees.
• Exemption of VAT on mammography machines used for detection of breast cancer.
• Advance Ruling provision in place of DDQ.
• Information return by e-commerce portals will contain information about the suppliers.
• Entry tax levied on marble & granite slabs.
• PT exemption given to CRPF & BSF.
• Sugarcane purchase tax exemption for 2015-16 given to sugar factories exporting sugar as per government policy.
• Tax on petrol & diesel, which was imposed from 1st October 2015, to continue for another year.
• VAT Floor rate increased from 5 to 5.5 %.
• Mobile handsets purchased locally and sold in the course of inter state trade to be eligible for set off to the extent of the liability under the Central Sales Tax Act on their sales.
• Coconut oil sold in packing up to 500 ml to be taxed at 12.5 % instead of 5 %.
• Medicinal Hair oil made taxable at 12.5 %.
• Sweet corn made taxable at 5 %.
• Barbed wire, wire mesh and chain links made taxable at 5 % instead of 12.5 %.
• VAT on cotton seed reduced to 2 % from 5 %.
• VAT on battery operated and hybrid fuel operated public transport buses exempted.
• VAT on pyrolysis oil and LED tubelights reduced to 5.5 %.
• VAT on Sterlie water for injection reduced to 5.5 % from 12.5 %.
Maharashtra State Budget 2016-17
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