March 08, 2017

Salient Features of Tax Proposals in Rajasthan State Budget 2017-18 Commercial Tax Department

GST Preparedness

  • About 80% of the registered dealers have migrated to GST through primary enrolment.
  • Officers trained for the proposed GST Law. 75 officers trained as master trainers on the Goods and Services Tax Network who in coming months would train officers and dealers regarding IT network.
  • To educate the stakeholders, workshops organised at Divisional and District levels.
  • Centralized Call Centre and Simulation Centre for GST to be established in Jaipur.
  • At Divisional and District level, GST help desk to be established.
  • Commercial Taxes Department to be reorganised looking into the requirements under GST.

Simplification and facilitation

  • Deemed Assessment Scheme for VAT, Entry Tax, Luxury Tax and Entertainment Tax to be notified for the assessment year 2015-16 and subsequent years.
  • Relief to the Saraffa, Gems and Stone, Petroleum Retail Outlet and Tent dealers who had opted for composition scheme but could not comply with conditions of the compositions schemes.

Amendments in VAT/Electricity Duty/Luxury Tax Acts/Rules to facilitate relief to dealers

  • Provisions for waiver of interest, penalty and late fees proposed to be incorporated under the Luxury Tax Act.
  • Provisions for waiver of interest and penalty proposed to be incorporated under the Entertainment Tax Act.
  • Hard copies of the appeal to be accepted by Appellate Authority for the period in which dealers were unable to file online appeal.
  • Time limit extended for correction of the online generated declaration forms.
  • In case of award of additional work or receipt of additional payment, period of 60 days extended to avail the benefit of the exemption certificate already issued.
  • Date for correction of Form VAT-40E extended up to 31.03.2017 for the year 2015-16 to give relief to the works contractor.
  • Time extended up to 15.04.2017 for filing of revised VAT-11 for the year 2015-16.
  • Exemption of Entry Tax on the yarn brought into the state exclusively for job work.
  • For giving relief to the Micro and Small enterprises, composition scheme for such manufacturers having turnover up to Rs. 50 lac with the rate of composition fee 2% introduced.
  • Combination-Plier upto the value of Rs. 80/- exempted from VAT.
  • To give benefit to Micro and Small Enterprises, explanation is given for non-clubbing of investment in different enterprises setup under the same ownership.
  • Those industrial units availed the benefit under the Sales Tax Incentive Scheme, 1987 and who could not comply with the condition of maintaining average production for next 5 years, which are presently closed or declared sick under BIFR and have not sold their land for purposes other than industrial use, given relief under the CST Act.
  • Exemption of Entertainment Tax on online booking service charges.
  • Electricity Duty, Water Conversation Cess and Urban Cess exemption given to Jaipur Metro Rail Corporation for operation and maintenance.

Tourism

  • VAT on ATF reduced to I% under Regional Connectivity Scheme of Government of India to promote tourism in the State.

Incentives for investment promotion

  • Benefit of the RIPS-2014 for oil mills to promote farming of mustard and oil seed in the state.
  • Additional benefits given for the units established in backward and most backward areas to promote additional employment to youth belonging to Rajasthan.

Amnesty Schemes

  • Amnesty Schemes for VAT, Entry Tax (Goods) and Entry Tax (Motor Vehicles) notified.

No new tax in VAT, Entry Tax, Luxury Tax and Entertainment Tax except increase of VAT on cigarette by 15%.

Registration and Stamps

e-Governance Measures

  • Facility of submitting online application on e-panjiyan software for stamp refund.
  • Site inspection of immovable property through GPS based Rajdhara App.
  • Facility of submitting online application for fresh licence and renewal of licence to stamp vendors.
  • e-panjiyan facility to be extended in 200 Sub-registrar offices.
  • Facility of e-stamp in 100 more sub-registrar offices to be provided.

Simplification and Facilitation

  • Benefit of concession of stamp duty available on the document of release of ancestral property shall also be extended to father’s sister and son of predeceased brother.
  • Rate of stamp duty on agreements relating to advertisement for commercial purposes shall be simplified.
  • Looking into the sluggish growth in the real estate market, commercial plots of 100 to 500 sq. meter to be allowed 5% concession and commercial plots more than 500 sq. meter to be allowed 10% concession in the market rates.
  • Instrument of equitable mortgage to be included in the category of instruments mentioned in section 5 of the Rajasthan Stamp Act to provide concession of stamp duty on the supplementary documents (other than principal document) executed to complete the transaction of equitable mortgage.
  • Concession in stamp duty allowed on the documents of dwelling units executed in favour of EWS or LIG by private developers under the Chief Minister Jan Awas Yojana-2015 similar to available on the documents executed by Urban Local Bodies under the Scheme.
  • Provision made for refund of excess stamp duty deposited at the time of
  • registration of the document.
  • Time limit of three months prescribed for refund of stamp duty on the spoiled stamp.
  • Calculation and rate of stamp duty simplified and registration fees reduced on the instruments of leases/rent deed.
  • 1% remuneration given to licensed stamp vendors on the amount of surcharge collected by them.

Relief in Stamp duty and Registration fees

  • Stamp duty reduced from 5 to 3 percent and registration fees to be reduced from one percent to 0.25 percent and maximum rupees 10000/- on partition deed of other than ancestral property.
  • Stamp duty on agreement to sale and power of attorney authorising sell of immovable property reduced from 3 and 2 percent respectively to 0.5 percent and registration fees on agreement to sale and power of attorney reduced to 0.25 percent and maximum rupees 10,000/-.
  • Maximum limit of stamp duty reduced from 10 lacs to 5 lacs on the instruments of loan documents without possession of property.
  • Registration fees on the documents of family settlement reduced from one percent to 0.25 percent and maximum rupees 10,000/-.
  • Benefit of 100% concession of stamp duty extended from 31.03.2017 to 31.03.2018 on the instrument of loan executed for the purposes of establishment of Startup under Startup Policy-2015, education loan and cash credit, overdraft or term loan under the Scheme of MUDRA and reverse mortgage of property by senior citizens.
  • The registration fees on conveyance reduced to maximum limit of rupees 4 lacs.
  • Stamp duty on the instrument of conversion of partnership firm, private limited company or unlisted public company into Limited Liability Partnership reduced to 0.5 percent and registration fee reduced to maximum rupees 10,000/-.
  • Concession in stamp duty allowed up to 31.12.2017 on the lease deeds issued by Urban Local Bodies after regularisation on the basis of unregistered and unstamped instruments.
  • To give relief to common man, interest and penalty payable on unregistered and unstamped intermediary instruments executed before getting lease deed from Urban Local Bodies remitted.
  • 100% exemption from interest and penalty allowed under the Amnesty Scheme if the stamp duty due is deposited up to 30.04.2017.
  • Registration fees reduced and charged 20% of the amount of stamp duty charged on the lease deeds up to the period of 20 years.
  • Stamp duty exempted on the instrument of assignment of debt of a sick industrial unit from bank/financial institution in the favour of Asset Reconstruction Company.
  • Stamp duty exempted on the instrument of transfer of sick micro small enterprise as defined in the Rajasthan Sick Micro and Small Enterprises (Revival and Rehabilitation) Scheme, 2015.
  • Surcharge for development of basic infrastructure facilities and protection and propagation of cow and its progeny shall be levied on all the instruments included in the Schedule to the Rajasthan Stamp Act 1998.

Rate of stamp duty rationalized on the licence and renewal of licence of revolvers and pistols.

Transport Department

  • Refund applicatios for one time tax owing to category change or change of the place out of Rajasthan to be accepted up to six month instead of 3 months to give relief to the vshicles owners.
  • Definition of purcluse price of vehicles rationalised to exclude elements of rebate, discount or concess on for calculation of tax.
  • The upper limit a! tax amount payable for dumpers/loaders are presently Rs. 25,000/- since 04.10.2002. It has been extended to Rs. 35,000/-.
  • Trade certificate holder manufacturers of vehicles/dealers fee rationalized for the vehicles kept in the possession.
  • One time tax on Construction equipment vehicles (CEV’s) rationalized.
  • Lump sum tax with 5 instalments for goods vehicles up to 16.5 ton GVW, contract carriage tourist pert–nit/private service vehicle up-to the seating capacity of 22 seats.

Revenue & Colonisation

  • Interest payable on the outstanding instalments due towards land allotment in Colonization areas waived off on lump sum deposit of the due instalments. The relief on the interest would be available to the farmers up-to 30.09.2017.

Urban Development & LSG

  • 100% relief on interest payment, if outstanding lease rent is paid in lump sum by the lease holders in local bodies/ authorities/ UITs and Housing Board. This relief in interest payment would be available up-to 30.09.2017.
  • 100% relief on penalty and interest payment, if outstanding Urban Development Tax is paid in lump sum by the lease holders in local bodies. This relief in interest payment would be available up-to 30.09.2017.
  • 100% relief on interest and penalty payment, if outstanding instalments since 01.01.2001 are paid in lump sum by the allottees of EWS/ LIG Houses allotted by Development Authorities/ UITs/ Housing Board. This relief would be available up-to to 31.12.2017

PHED

  • 100% relief on interest and penalty payment, if outstanding drinking water dues pending as on 31.12.2016 are paid by the domestic consumer in lump sum by 30.6.2017.

Basic Infrastructure development

  • New buildings to be constructed for offices of DIG Bhilwara and Banswara and offices of Sub-registrar Kota-I, Luni, Jaisalmer, Udaipur-I and II, Rajsamand, Malpura, Niwai, Chaksu, Shahpura (Jaipur), Sanganer-I & II and Bhiwadi.
  • Additional building block to be constructed in Jaipur Divisional Office of Commercial Taxes Department. Additional building block to be constructed at Excise Head quarter at Udaipur, new buildings to be constructed for EPF Sriganganagar, DEO Kota, AEO EPF Jhunjunu, Sriganganagar, Chum, Kotputli AEO EPF, PO and line office at Nagour, Baran and Kota.

 

Other Important Proposals

  • Admission in government schools to be increased by 32%, smart labs will be set up in schools.
  • Self defense training will be provided to 3 lakh 60 thousand girls in state schools.
  • New sports policy will be released, Bharatpur district to get wrestling academy; Volleyball academy will be established in Jhunjhunu.
  • Rs 5986 allocated for social justice department in the budget.
  • Economical weaker students from the General Category who get admissions in medical colleges, IITs and NLUs will get Rs 25,000.
  • Recommendations of seventh pay commission to be implemented in the state.
  • Eco-tourism to be developed at Trevor’s Tank at Mount Abu, Rs. 7 crore to be allocated for Project Leopard.
  • 190 cities will get WiFi facilities in next financial year.
  • Villages with population of more than 5,000 will be developed as smart villages.
  • Rs 100 crore allocated to establish district hospital in Dholpur.
  • 14 districts in Rajasthan will get new screening facilities for breast cancer, Rs 3.36 crore allotted for this.
  • Rs 1,399 crore allotted for higher education in the budget, Karauli and Bharatpur will get new engineering colleges.
  • Home department to get Rs 5,600 crore which is 11.80% more than the previous year.
  • Block headquarters will be connected with fibre, eight lakh people will be given IT training in 2017-18.
  • Rs. 158.63 crore allocated for art, culture and archaeology department which is 49.42% more than the Revised Estimates of 2016-17.
  • Rs. 36 crore allocated for basic infra, conservation, beautification and renovation works at various tourist places in state.
  • Rs. 2 crore allocated for 25 lac bigger plants, provision of Rs. 3 crore for development of 5 Smriti Van.
  • Rs. 10.90 crore to be allocated for conservation of wood fossils, display and development of infra facilities for tourism at Aakal Wood Fossil Park.
  • Those selected for administrative services will get Rs 50,000.
  • One lakh farmers will get soil health cards, announces Vasundhara Raje in her third Rajasthan Budget 2017 speech.
  • Over 1480 Reverse Osmosis plants will be installed in the villages. One lakh new rural electricity connections will be provided to the farmers.
  • Budget allocates nearly Rs 16 crore for maintenance of air strips in the state.

Source: http://finance.rajasthan.gov.in/aspxfiles/webapps/statebudget/statebudget2017-18.aspx