The Chief Minister (Finance Minister) presented Rajasthan State budget in the State Assembly on 9-3-2015 and the detailed impact thereof, is summarised as under :
1. Reduction in rate of tax under Rvat Act w.e.f. 9-3-2015:
Entry No. |
Item |
Existing Rate |
Reduced to |
Notification No. |
210 |
Diesel generating set, alternators of all kinds and parts thereof |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
211 |
Core assembly of transformers |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
212 |
Aluminium containers for compressed gas & liquefied gas |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
213 |
Toilet paper & toilet tissue paper |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
214 |
Abrasive paper (regmal) |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
215 |
Brushes of all types excluding tooth brush |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
216 |
Soya milk |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
217 |
Non-mechanised floor wipers and floor mops |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
218 |
Life jackets and life belts |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
219 |
Transistor, radio |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
220 |
Pre-stressed concrete poles |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
221 |
Membrane for Water Treatment |
14% |
5% |
F.12(23)FD/Tax/2015-198 |
14 |
Used earthmoving and mining machinery as mentioned in Entry No. 155 of Schedule IV. |
5% |
2.5% |
F.12(23)FD/Tax/2015-200 |
22 |
CFL bulb, CFL tubelight, LED bulb & LED tubelight |
5% |
3% |
F.12(23)FD/Tax/2015-200 |
21 |
All kinds and forms of Kota Stone |
5% |
2% |
F.12(23)FD/Tax/2015-200 |
2. Increase in rate of tax under RVAT Act w.e.f. 9-3-2015 :
Entry No. |
Item |
Existing Rate |
Increased to |
Notification No. |
18 |
Cellular phones, parts and accessories thereof |
5% |
8% |
F.12(23)FD/Tax/2015-200 |
19 |
Tablet computers known by whatever name like i-pad, e-book reader, phablet, slate etc. |
5% |
8% |
F.12(23)FD/Tax/2015-200 |
GENERAL RATE OF TAX UNDER SCHEDULE–V OF RVAT ACT |
14% |
14.5% |
F.12(23)FD/Tax/2015-199 |
3. The rate of tax under Composition Scheme for Gems Stones & Sarafa dealers has been amended. Earlier the composition fee was
Rs. 500/- for every rupees two lakhs or part thereof. Now the composition fee has been changed to
rupees one thousand five hundred for every rupees two lakhs or part thereof
w.e.f. 1-4-2015.
4. Exemption allowed from Tax Liability under Rvat Act
The following items have been exempt from tax under RVAT Act as per Notification No. F.12(23)FD/Tax/2015-194 dated 9-3-2015
Entry No. |
Name of Item |
142 |
Pseudophakic Intra Ocular Lens |
143 |
Mosquito Net, Bird Net |
144 |
Jute Rope |
145 |
Kalijeeri, Kalaunji |
146 |
Chokhat made of sand stone |
147 |
Marble powder, Kerezi and Chips |
148 |
Hawan samagri including sambrani |
5. Works Contract
i. The government has issued a notification No. F.12(23)FD/Tax/2015-206 dated 9-3-2015 w.e.f. 1-4-2015 under Exemption Scheme on payment of Exemption Fee by giving two options as under:
OPTION A :
Item No. |
Description of works contract |
Rate of exemption fee (% of the total value of the contract) |
1 |
Works contracts where the cost of goods involved in execution of works contract does not exceed five per cent of the total contract amount |
0.10% |
2. |
Works contract relating to construction and repair of roads, runways, bridges, dams, drains excluding sewerage system, tunnels, canals, channels, barrages, railway tracks, causeways, subways, diversion, spill ways, boundary walls, buildings and water harvesting system |
0.75% |
3. |
Works contract awarded by Rajasthan Vidhyut Prasaran Nigam Ltd., Jaipur Vidhyut Vitran Nigam Ltd., Ajmer Vidhyut Vitran Nigam Ltd., Jodhpur Vidhyut Vitran Nigam Ltd. |
0.75% |
4. |
Any other kind of works contract not covered by item Nos.1 to 3 above |
2.00% |
Conditions
1. The dealer, who has opted for payment of exemption fee in lieu of tax under option A of Clause 1, shall purchase taxable goods within the state from the registered dealers of the State for the execution of works contract.
2. In case such dealer, procures or purchases any goods in any manner other than the manner as provided in clause (a) above he shall, in addition to the exemption fee, be liable to pay an amount equal to the amount of tax that would have been payable had the goods been purchased in the State from a registered dealer.
3. In this option the contractor will not be entitled to claim the Input Tax Credit on purchase of the taxable goods within the State of Rajasthan.
OPTION B
Item No. |
Description of works contract |
Rate of exemption fee (% of the total value of the contract) |
1 |
Works contracts where the cost of goods involved in execution of works contract does not exceed five per cent of the total contract amount |
0.70% |
2. |
Works contract relating to construction and repair of roads, runways, bridges, dams, tunnels, canals, channels, barrages, railway tracks, causeways, subways, diversion, spill ways, drains excluding sewerage system |
4% |
3. |
Works contract related to construction and repair of building, boundary wall, sewerage system, sewerage treatment plant, water supply works and water harvesting structure. |
5% |
4. |
Works contract awarded by Rajasthan Vidhyut Prasaran Nigam Ltd., Jaipur Vidhyut Vitran Nigam Ltd., Ajmer Vidhyut Vitran Nigam Ltd., Jodhpur Vidhyut Vitran Nigam Ltd. |
3.50% |
5. |
Works contract related to setting up of new enterprises or expansion of existing enterprises manufacturing fertilizer within the state with maximum investment of |
1% |
6. |
Any other kind of works contract not covered by item Nos.1 to 5 above. |
6% |
Conditions
1. The dealer, who has opted for payment of exemption fee in lieu of tax under option B of Clause 1, shall be entitled to purchase the goods involved in execution of works contract from outside the state i.e. goods purchased against
Rs.C’ form will be allowed.
2. In this option the contractor will not be entitled to claim the Input Tax Credit on purchase of the taxable goods within the State of Rajasthan.
ii. TDS (Tax Deduction at Source):
With effect from 1-4-2015 the rate of TDS under Works Contract will be applicable @ 6% of such sum, if payment is made to a dealer registered under the RVAT Act. In case of unregistered dealer, the rate of TDS under Works Contract will be applicable @ 7%. In case the exemption certificate is issued u/s. 8 of the RVAT Act, the awarder or any person authorised by him, shall deduct, in lieu of tax, an amount equal to rate of exemption fee as mentioned in the exemption certificate.
iii. Developers & Builders:
The government has amended the notification No. F.12(59)FD/Tax/2014-18 dated 14-7-2014 with effect from 1-4-2015. As per amended notification there are two options for payment of tax liability by the developers/builders as under :
Option A : Rupees one thousand three hundred for every two lakhs or part thereof, of the consideration received in the relevant period subject to the following conditions:
i. The developer/builder shall purchase the goods from within the state for execution of the works contract from a registered dealer of state;
ii. In case such dealer, procures or purchases any goods in any manner other than manner as provided in condition No. (i) above, he shall, in addition to lump sum amount, be liable to pay an amount equal to the amount of the tax that would have been payable, had the goods been purchased in the state from a registered dealer.
Option B : Rupees eight thousand for every two lakhs or part thereof, of the consideration received in the relevant period.
NOTE : i. The dealer opting to pay tax in lumpsum has to submit his option in the application for permission.
ii. In both the options the ITC will not be available.
Amendments in Rules
1. Under Rule 16, sub-Rule (3) of RVAT Rules, 2006 the time limit for finalisation of the assessment after closure of the business (cancellation of RC) was 30 days. Now the time limit has been increased to
180 days.
2. Under Rule 19 sub-Rule (8) the time limit for filing the Revised Return has been increased. Earlier the provision was nine months from the end of the relevant year.
Now the dealer can revise the Return within 15 days from the last date of submission of Annual Return. This will come into force
from 1-7-2015.
3. Late fee under Rule 19A for delayed submission of the Return has been reduced.
4. Under Rule 21 of RVAT Rules, 2006, the dealers may submit the declaration forms
up to 30-6-2015 in cases where assessments have been completed till 30th September, 2014.
5. Under Rule 22A now the turnover of the sub-contractor shall be deducted from the taxable turnover of the main-contractor in case the sub-contractor has opted the exemption scheme under Works Contract.
6. The Government has amended Rule 27 of RVAT Rules, 2006 and now all refunds will be
issued online w.e.f. 1-7-2015.
7. Forms VAT-10, VAT-22, VAT-23, VAT-24, VAT-36 and VAT-59 will be modified.
Others
1. In cases where the turnover of the dealer in the course of inter-State trade or commerce is more than 50% of the previous year and refund is due because of ITC, in such cases
the refund will be issued online within 30 days after submission of the Quarterly Return and filing of online application for refund.
2. The thrashhold limit of quarterly taxpayers whose annual tax liability was
Rs. 20,000/- for the year preceding to current assessment year, has been increased to
Rs. 50,000/-.
3. The Return under the VAT, CST, Entry Tax and Luxury Tax will be filed in one Return i.e. VAT-10.
4. The amount of court fee stamps for filing the appeals have been changed. For filing the 1st Appeal, there shall be no court fee stamps applicable. For filing the Memorandum of Appeal u/s. 83 (II appeal) the court fee of
Rs. 100/- will be applicable. For filing the Memorandum of Appeal U/s 84 (Revision to High Court) the court fee of
Rs. 150/- will be applicable
5. It is proposed to start online VAT-35, VAT-36 & VAT-36A.
Entry Tax Act
a) Following items have been exempt from Entry Tax:
Sl. No. |
Name of Item |
1. |
Tin Plate |
2. |
Coffee, Cocoa |
3. |
Handpumps, their parts and accessories. |
4. |
Photographic Film & Photographic Paper. |
5. |
AC Pressure Pipes. |
6. |
Salt Petre, Gun Powder, Potash and Explosives. |
7. |
Wireless Reception Instruments, Apparatus, their parts and accessories. |
8. |
Toulene, Mix-Xylene, Benzene and Mineral Turpentine Oil. |
9. |
Marble Cutting Tools, Gang Saw. |
10. |
Diamond Bits. |
11. |
Batasha, Mishri, Makhana, Sugar toys. |
12. |
Ice-Cream. |
13. |
Pipe and Pipe Fittings. |
14. |
Radio sets and Radio Gramaphones, VCR, VCP, Tape-recorders, Transistor sets and parts and accessories thereof. |
b. The rate of Entry Tax has been reduced on the following items as per Notification No. F.12(23)FD/Tax/2015-211 dated 9-3-2015 :
Sl. No. |
Name of Item |
Existing Rate |
Reduced to |
1. |
All kinds of industrial fuels, including petrol, gasoline, High speed diesel oil, Light speed Diesel oil, Superior Kerosene oil, LPG (including Propene, Butylene, Butadine, Ethylene, Oxylene), ATF (Aviation turbine fuel), Furnace oil, Hexane (solvent oil), Naphtha, Natural gas, Petroleum jelly (including Vaseline), Paraffin wax (including chlorinated paraffin wax), LSHS (lo sulpher high stocks), CBFS (carbon black feed stock), Petroleum coke in any form, Heavy alkylate, Methyl acetate, Remax, Revive, C-9 known by whatever name |
5% |
3% |
2. |
All kinds of electrical and electronic goods including electronic meter, FAX machines, SIM cards and smart cards and parts & accessories thereof. |
14% |
4% |
3. |
Television sets, washing machine, microwave oven. |
14% |
4% |
4. |
All kinds of Telephone and parts thereof. |
5% |
4% |
5. |
Computers and their accessories |
5% |
4% |
6. |
Parts and accessories of all types of motor vehicles (other than tractors) including two and three wheelers. |
15% |
4% |
7. |
Tyre, tubes and flaps of two wheelers, three wheelers and four wheeler motor vehicles, motor vehicles with more than four wheels or jeep trailers. |
14% |
4% |
8. |
Aluminium structurals, steel fabrication items including G.S. Stay Sets, switch fuse units and isolators |
14% |
4% |
9. |
Steel structurals and steel bars including Thermo-Mechanically treated steel bars (TMT) |
5% |
4% |
10. |
Generating sets. |
14% |
4% |
11. |
Transformers and Transformer oil |
5% |
4% |
12. |
Insulators |
5% |
4% |
13. |
ACSR Conductors |
5% |
4% |
14. |
Stay wire |
5% |
4% |
15. |
Glass and glass sheets |
14% |
4% |
16. |
Photo copiers |
14% |
4% |
17. |
Bitumen of all kinds |
14% |
4% |
18. |
Lubricants including lube oil and grease |
14% |
4% |
19. |
Stainless Steel Ingots, Billets, Blooms, Flats and Flat Bars |
5% |
0.5% |
Electricity Duty
Electricity duty @ 40 paisa per unit has been levied w.e.f. 16-3-2015 on consumption of self-generated energy for any purpose in respect of energy generated by Captive Power Generating Plants other than by the Diesel Generating sets.
Luxury Tax
Substantial amendments have been proposed and a new Composition Scheme is proposed to be launched.
Stamp Duty
Substantial amendments are proposed in Stamp Duty.
M. L. Patodi, Advocate &
CA. Ishu Jain, Kota (Rajasthan)