Equipped for industrialists:

Posted on    08 February 2008

Value added tax

Turnover for registration limit to be increased from Rs 2-5 lakh so as to exclude small and tiny dealers.


The turnover for composition tax limit to be enhanced from Rs 15-40 lakh, so that small dealers are exempted from regular return filing procedures and maintenance of accounts for late filing of VAT returns, the penalty is Rs 50 per day, which is a very harsh provision and should be applied to only those dealers who are regularly not submitting their returns in time.


A penalty of 10% should not be levied and reduced to 1%.


Advance Ruling Committee to be reconstituted and timeframe fixed for its rulings.


Facility of purchasing goods from outside the state made available to works contractors under composition scheme to be extended to hoteliers.


Section 14 to be amended to allow Input tax credit to the extent of tax charged at a rate higher than that prescribed under Section 8(5) of the CST Act. Tax practitioners enrolled under KVAT Act are to be made eligible to audit for corporate if appointed by the companies.


VAT on packaging machines should be reduced to 4 per cent from the current 12.5%.



Stamp duty
The present stamp duty on equitable mortgage is the highest, anywhere in India, and should be brought on a par with the neighbouring states, with a higher cap of Rs 50,000. Stamp duty on registration of properties needs to be brought down to 5% to improve the compliance and bring in more revenue to the government.


Stamp duty exemption be given for sale and purchase of industrial sheds and land which will be a great relief of micro SMEs.


Entry tax
Entry tax should be abolished as it is not vatable and as a move towards goods & service tax Entry tax on readymade garments to be withdrawn as no other state is levying entry tax on readymade garments as it is becoming uncompetitive. Entry Tax exemption to be provided for diesel.


Show tax
Show Tax payable by theatre owners on every show needs to be abolished.


Entertainment tax
Entertainment Tax exemption to be given for Kannada movies that are remakes.



Royalty on iron ore & building stone
Royalty on Iron ore & building stone levied by the Mines & Geology Department has been increased from Rs 16 per tonne to Rs 600 per tonne which should be reduced drastically. Royalty on building stone has been increased from Rs 15-30 which should also be reduced.


Pollution control cess
This cess should only be levied on the effluents discharged by the particular industry and not based on their investment on land and buildings, plant and machinery.


Profession tax
The exemption limit should be raised for salaries up to Rs 10,000.

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