Highlights of Maharashtra State Budget 2016-17

Maharashtra Finance Minister Sh. Sudhir Mungantiwar on Friday March 18, 2016 has presented in the state Assembly the budget for 2016-17. Following are highlights of Maharashtra State Budget 2016-17:

  • Exemption from Levy of Sugarcane Purchase Tax for the year 2015-16 to the Sugar Factories which export sugar as per Government
  • Amnesty scheme for Profession Tax enrollment Tax liability and penalty will be restricted to previous three years.
  • Amnesty for tax administered by Sales For dues upto 31st March, 2005 subject to full tax payment, the interest and penalty shall be waived and for disputed dues from 1st April, 2005 to 31st March, 2012 subject to full tax payment, and 25% interest payment under VAT Act, balance dues will be waived.
  • Exemption of VAT on Warping and Sizing of Yarn for promoting the Textile
  • Turnover limit for composition to retailers under the MVAT Act increased from 50 Lakh to Rs. 1 Crore.
  • VAT on the Mammography machines used for detection of breast cancers exempted.
  • VAT on sterile water for injections reduced from 5% to 5.5%.
  • Bakery Industry, the turnover of tax free goods is excluded for computing the turnover for
  • VAT on Retrofit kit fitted to vehicles for physically handicapped
  • VAT on LED Tubes reduced from 5% to 5.5%.
  • VAT on Pyrolysis Oil reduced from 5% to 5.5%.
  • Profession Tax exemption to the armed personnel of CRPF and BSF
  • Exemption from late fee to the Government aided educational institution for e-filing of Professional Tax
  • VAT on Steel Wire Mesh, Barbed Wire and Chain links reduced from 12.5% to 5%.
  • VAT on Pencil Box, Stapler pins, Dusters, Gum and Gum-sticks used by student reduced from 5% to 5.5%.
  • VAT exempted on the Bamboo Products excluding Bamboo
  • Amnestyscheme under Industrial Policy 2013 for closed and un-revivable units to be implemented
  • Logistic Hubs will be established to promote the Logistic Industry and Levy of CST will be exempted on the interstate sales effected from the Logistic
  • VAT rate increased from 5% to 5%, excluding declared goods.
  • Motor Vehicle Tax enhanced on two wheelers and three wheelers owned by Tax to be based on engine capacity – upto 99cc – 8%, 100cc to 299cc – 9%, 300cc and above – 10%. Institutional and Imported Vehicles to be subjected to double the rate of tax.
  • The VAT composition tax rate 8% to hotels and restaurants having turnover of sales 3 Crore and more.
  • Levy of Entry Tax on Marble and Granite
  • Increase in Lottery Tax on the draws of
  • VAT tax on Coconut hair oil sold in pack upto 500 ml enhanced to 5%.
  • Establishment of Advance Ruling Authorityfor speedydisposal of disputed questions under Sales Tax
  • Implementations of SAPbased Computer system in Sales Tax Input Tax Ledger to be made available to the tax payer.
  • Pilot Project will be started by Sales Tax Department for implementation of Digital Billing
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