Karnataka State Budget 2015- Tax and Stamp Duty Changes

-As the Central Government of India had indicated that GST could be implemented from 01.04.2016. State Government to take necessary steps to prepare Trade and Industry and department for smooth transition to Goods and Services Tax (GST) System.


Relief under VAT:
♠Increase in registration limit from Rs.7.5 lakhs of annual turnover to Rs.10 lakhs.

♠Tax reduction from 14.5% to 5.5% on Wick stoves, Mobile phone charger, M-sand, M-sand manufacturing machinery/ equipment, Industrial cables.

♠Exemption to certain Solar PV Panels and Solar Inverters from VAT to promote solar energy generation.
Increase in tax rate:

♠ VAT on Cigarettes, Cigars, Gutkha and other manufactured tobacco hiked from 17% to 20%.

♠ Sales tax rate increased by 1% on Petrol and Diesel.
Rationalization Measure:
Provision to be made for single First appeal against re-assessment for several tax periods of one financial year.
Period of disposal of appeals KAT enhanced from current 180 days to 365 days from the date of stay

Order.
Section 10 of KVAT Act, 2003 to be amended to allow claiming of input credit for a period of 5 months from the month in which it has accrued.

Online filing of appeals against order or proceeding under any KVAT Act.
Online uploading of the orders by Appellate Authority before issuing the same to dealers.
Details of statutory forms uploaded would be linked to turnover declared in returns and this would avoid production of these forms at multiple places by dealers.
As per section 16 of KVAT Act, 2003. Permission for Availing special accounting scheme now under sakala with 1 month time limit.

Professional Tax:
♠ Profession Tax exemption to senior citizens who have attained age of 60 years and above.

♠ Persons drawing salary less than 15000 exempted from Profession Tax.
Stamps and Registration:

♠ Online time slot booking for registration of documents in any of the sub-registrar’ offices in the district.

♠ Levying of 1% advalorem registration fee on the market value of the property or the consideration whichever is higher, in respect of agreement for sale, wherein the possession of the property is delivered or is agreed to be delivered and 1% advalorem registration fee in respect of document of sale executed in pursuance of such agreement for sale, subject to a maximum of Rs.500/-·

♠ Optionally registrable documents affecting immovable property will be required to be compulsorily filed online under section 89 of Registration Act, 1908.

♠ Levying stamp duty on Limited Liability Partnership instruments.

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