March 08, 2016
Highlights of Tax Proposals in Rajasthan State Budget 2016-17
A. Ease of doing business
Commercial Tax Department
- e-Governance measures
- Instead of multiple forms, a single unified online form for registration and return for all the taxes.
- Dealer can obtain online Registration Certificate without visiting Commercial Taxes office by filing digitally signed online application.
- Appeal, applications forms like waiver and rectification etc. have been made online. Demand and Collection registers (DCR) for all the taxes have been made online so that dealer can get information about his outstanding dues online without visiting Commercial Taxes office.
- Two lakh and eighteen thousand assessments have been done online till February, 2016.
- SBI e-pay Gateway is now linked to e-GRAS (Government Receipt Accounting System) by which payment can be made through 35 banks instead of 8 banks earlier.
Simplification and facilitation
- Information about ‘Dealer Search’, payment, PAN, Forms & Certificates and status of all types of applications to be available to dealers on anytime and anywhere basis.
- Online suggestions and grievance redressal facility to be provided on departmental portal and on mobile app to address tax related problem of dealers and common man.
- Online appeal facility with unified form for Entry Tax, Luxury Tax and Entertainment tax.
- Facility of online refund under Entry Tax, Luxury Tax and Entertainment tax along with single unified refund application form.
- Centralized litigation tracking system to be introduced for effective monitoring of cases under litigation.
Amendments in VAT/Electricity Duty/Luxury Tax Acts/Rules to facilitate dealers
- Time limit reduced to 30 days in place of 60 days for changing the principal place of business for a dealer under ease of doing business.
- State Government empowered to waive off late fee imposed for non filing/delayed filing of return by a dealer.
- Dealers who shift from Form VAT-11 to From VAT-10 are not required to file return for previous quarters.
- Contractor holding Exemption Certificate but making sale of leftover taxable goods in a project may file return in Form VAT-11.
- Early refund or refund adjustment to be given to the dealers in case where time period in challan is wrongly mentioned or excess amount is deposited.
- Online refund procedure simplified for the dealers.
- Time limit for disposal of rectification application of dealers to be reduced to six months in place of one year.
- Dealers to be allowed facility of digital signatures for invoice along with normal signatures.
- TDS certificate would be automatically generated in dealer’s profile in case awarder files VAT-40E online so that dealers are not required to personally present it before the assessing authority.
- Facility for revising Form VAT-40E given to awarder till 3 months from the close of the financial year.
- Dealers allowed exercising option regarding place of audit to be conducted under business audit.
- Time period for finalizing assessments for 2013-14 is extended up to 31.07.2016.
- Builders and Developers now given facility of depositing project wise lump sum tax.
- Builders and Developers are not required to deduct TDS of registered sub contractors.
- Deputy Commissioner authorised to extend period for rectification of mistake in online generated declaration forms by 6 months in addition to the present time limit of 6 months.
- Generating set included in capital goods with a view to facilitate investment in industrial units.
- Provisions of e-transit pass to be made from 01.08.2016 on selected commodities. This e-transit pass may be generated through mobile app also.
- Electricity Duty Act to be amended for providing powers to the State Government regarding exemption of Urban Cess and Water Conservation Cess.
- Luxury Tax registration simplified in parity with VAT registration.
- Entry tax to be levied on all goods taxable under VAT Act brought into the State through e-commerce.
B. Registration and Stamps
- Facility to farmers for online registration of mortgage deed documents relating to agricultural loan.
- Linkage to the banks on departmental software to furnish the information regarding documents executed by them and stamp duty paid thereon.
- e-panjiyan facility shall be expanded by linking all the full time Sub-registrar offices and facility of e-stamp in 100 more ex-officio sub-registrar offices shall be provided.
- Advance time slot booking facility to be provided to public for registration of documents through e-panjiyan software in Sub-registrar offices at divisional headquarters.
- Digitization of old registered documents with facility of online search of registered documents for masses.
- Provisions made for various modes of service of notices including service by e-mail.
Simplification and Facilitation:
- Computerized help desk facility in Sub-registrar offices of Jaipur city in phase-I. Aadhar based verification of witnesses in place of physical presence in Sub-registrar office.
- Separate cadre for Registration and Stamps Department.
- New buildings of Sub-registrar offices will be built at Jasol, Nimbahera, Nathdwara, Kuchaman City, Pali, Bikaner and Bhilwara.
- Provisions of levy of stamp duty on documents of amalgamation etc. of companies and banks simplified.
- Limit for selling physical stamp papers increased from Rs. 50,000/- to Rs. 1 lac for those stamp vendors who sale e-stamps also.
- Sub Tehsil Kalwad of district Jaipur and sub Tehsils Nokh, Sam and Ramgarh of district Jaisalmer authorised for registration of documents.
- Inspector General of Stamps authorised to issue guidelines for valuation of the constructions not covered by any of the given categories.
- Provisions relating to valuation of land for farm house purpose made practical and logical.
- Provisions made for levy of stamp duty on documents of incorporation, amalgamation, demerger, reconstruction, winding up and dissolution of LLP.
- Stamp duty on the instruments of Leave and licence made similar to lease deed.
- One time tax on non transport vehicles to be charged on the engine capacity and fuel consumption in place of value of the vehicle.
- Green tax classification based on the age of the vehicle.
- Ad-valorem rates for special road tax on goods vehicles of value more than Rs10 lacs.
- One time tax with 6 instalments for up to 12000 Kg gross vehicle weight in place of 7500 kg Gross Vehicle Weight and private service vehicles along with taxi and maxi cabs.
Incentives for investment promotion
1.RIPS-2014 has facilitated investment of Rs. 8096 crores through 252 industrial enterprises.
2.Women entrepreneurs allowed the following additional benefits under RIPS-2014:-
Exemption in conversion charges to be enhanced to 100% in place of 50% at present.
Limit of employment generation subsidy for general category employee to be increased to Rs. 30,000 from Rs. 25,000 and in case of women/SC/ST/person with disability employees to be increased to Rs. 35,000 in place of 30,000.
3.Additional benefits of conversion charges and employment generation subsidy also to be given to entrepreneurs of Scheduled Caste/ Scheduled Tribe and persons with disability similar to women entrepreneurs.
4.Enterprises established in municipal areas of backward and most backwards districts including TSP area to be given benefits of backward and most backwards areas.
5.Enterprises established in backward and most backwards areas to get following additional benefits:-
100% exemption of electricity duty instead of 50%.
EFCI limit will not be applicable for investment subsidy and employment generation
Additional Special interest subsidy of 0.5% to be given to the enterprises being established in backward area and 1% in most backward areas over and above given in other
Incentives to Agro industries/food processing/Bio technology sector
- Food processing sector to be declared as thrust sector under RIPS-2014. Food processing units established in Food Park to be given special concessions and subsidy.
- Additional benefits under RIPS-2014 in the agro processing sector also to be given to flour milling enterprises of Atta, Suji, Maida and Besan investing more than Rs. 2 crores and malt manufacturing enterprises. Fish feed manufacturing enterprises to be given interest subsidy benefits under RIPS-2014.
- Bio technology sectors to be included in thrust sector under RIPS-2014 and following benefits will be given:-
Enterprises investing more than Rs. 5 crores and up to 25 crores will be given 60% investment subsidy and 10% employment generation subsidy. For enterprises investing more than Rs. 25 crores limit of investment subsidy will be 70%.
100% exemption in Entry Tax on import of capital goods.
Benefit of customized package will be given on investment of more than Rs.100 crores and employment to more than 200 persons.
4. For the enterprises which have been sold or transferred, the remaining benefits under RIPS-2010 and 2014 will be given to the new owner or purchaser.
C. Tax Relief
Commercial Taxes Department
Government has exempted VAT on the following items:-
|1.||Solar Torch, Biomass Stove.|
|2.||Kerosene lamp/ Hurricane lantern, Kerosene wick stove, Kerosene pressure stove and parts thereof.|
|3.||Lai, Pattu, Camphor, Ghunghru, Saw dust.|
|4.||Sugarcane, Sattu, Khakhra, Unbranded toast or rusk.|
|5.||Articles of Marble up to Rs. 1000/- per item.|
|6.||Sewing needle, Safety Matches.|
|7.||Ganga Jal, Ganga Arghya packed in sealed containers and not meant for drinking water purposes.|
|8.||Earthern Roofing Tiles (Kelu)|
|9.||Animal Shoe Nail|
|10.||Rubber Playball & Balloons|
|11.||Hand Pumps, Parts and fittings|
Goods produced in jails would be exempted from VAT. VAT on all types of yarns reduced from 5.5% to 2%.
VAT on motor vehicles having Gross Vehicle Weight of 12000 Kg and more reduced from 15% to 13%.
VAT on Pan reduced from 14.5% to 5.5%.
VAT on following items has been reduced from 14.5% to 5.5%.
|1.||Measuring Tape & Vernier Calipers.|
|2.||Dental Filling & Fixtures.|
|3.||Pickle excluding branded pickle.|
|4.||All types of Plastic goods including plastic grills and unbranded plastic moulded furniture.|
|5.||All types of carpets.|
|7.||SD card, memory card, pen drive.|
|8.||Health fitness and gymnastic equipments, fat losing belts, body vibrating items, morning walker, acupressure machines, thermal massager.|
Government has exempted the following items from Entry Tax:-
|2.||All kinds of telephone and parts thereof|
|6.||Television sets, washing machine, microwave oven|
|9.||Mineral water and water sold in seal containers|
State Government will be authorised for exempting Urban Cess and Water Conservation Cess.
Rate of TDS for contractors reduced to 3% from 6%.
Concessional CST rate of 0.25% on interstate sale by the enterprises established in Japanese Zone and Korean Zone, is extended up to 31.03.2017 or implementation of GST whichever is earlier.
Benefits of exemption of Electricity duty under RIPS-2010 to be given to service sector enterprises also.
War widows, retired army personnel and their widows, defence personnel etc. to be included for VAT benefits in CSD canteens.
Amnesty Scheme for Entry Tax and VAT
- Amnesty scheme in cases of Entry tax proposed to be launched to give relief to the dealers.
- Time period of Amnesty scheme under VAT is extended up to 31.03.2016.
Registration and Stamps
- For the year 2016-17, rates of agriculture, residential and commercial land not to be increased by District Level Committee.
- Stamp duty reduced to Rs. 50 and Rs. 100 on documents of residential units allotted to persons of EWS and LIG respectively under Chief Minister Jan Avas Yojana.
- Stamp duty reduced to Rs. 1000 on bank guarantee documents for the period before 09.03.2015 and stamp duty reduced to Rs. 100 maximum and Rs. 1000 maximum for renewal of bank guarantee executed for the period before and 09.03.2015 respectively.
- Stamp duty reduced on regularisation of pattas issued by Development Authorities/UITs/ Local Urban Bodies.
- Rate of stamp duty rationalized on the instruments of land use change and of similar nature.
- To give relief to the industry, maximum cap of Rs. 10 lacs prescribed on stamp duty on loan agreements/mortgage deed without possession of property.
- Stamp duty exempted on loan documents of up to Rs. 10 lacs under MUDRA Yojana.
- Reverse mortgage loans taken by senior citizens exempted from stamp duty.
- Stamp duty exempted on education loan documents of up to Rs. 10 lacs taken by students.
- Stamp duty exempted on the loan documents of up to Rs. 2 lacs sanctioned to the youth of the State for skill training.
- Stamp duty exempted on loan documents of up to Rs. 10 lacs taken by Start-ups eligible under Rajasthan Start-up Policy.
- In multi-storeyed buildings, valuation of proportionate land reduced from 50% to 40% for flats/units on third or above floors for stamp duty calculations.
- Upper limit of registration fee of Rs. 25,000 fixed on documents of loan agreement, hypothecation deed, further charge and mortgage deed.
- Rate of stamp duty reduced from 2% to 0.15% on documents of further charge. Stamp duty reduced on conversion of partnership and company into LLP.
- Stamp duty reduced on residential pattas which could not be registered due to restriction on registration during the period from 11.07.2013 to 02.03.2014 in Jasol and Pachpadra areas of Barmer district.
- Interest payable during the period from date of execution to date of order by Collector (Stamps) under sections 35 and 36 of Rajasthan Stamp Act to be exempted.
Revenue & Colonisation
- Interest payable on the outstanding installments due towards land allotment in Colonisation areas to be waived off on lump sum deposition of the due installments for the period from 01.04.2016 to 30.09.2016.
- No conversion charges required for setting up micro and small industries on agricultural land up to area of one acre.
Urban Development & LSG
- 50% relief in the payment of interest, if outstanding lease rent along with the lease amount of current financial year is paid by the lease holders in local bodies/authorities/UITs and housing board and 100% relief on interest payment, if outstanding lease rent along with the lease amount of future years is paid in lump sum. This scheme is applicable up to 30.09.2016.
- Land up to 500 sq. mtrs. in urban areas to be allotted at 50% of residential reserve price to establish Day Care Centre for children of working women. These Day Care Centres to be exempted from charges for land conversion/land use change also.
- Exemption from payment of one-time tax, registration fees, green cess and surcharge under the free Scooty distribution scheme for meritorious girls, girls under Devnarayan Yojna and girls under the TSP scheme.
- Lump sum tax on Tractor and Tractor Trolley used for commercial purposes reduced from 9% to 1%.
- 50% relief in payment of special road tax for contract carriage buses used by industrial and commercial institution on long term contract.
- Special Road Tax on recognized tour operators reduced to maximum of Rs. 12,500.
Measures for Additional Revenue Mobilisation:
- VAT on aerated drinks increased from 15% to 20%.
- 5.5% VAT on semi-stitched garments and Gwar gum and Gwar gum powder.
- VAT on all types of cigarettes increased by 15% on the existing specific VAT rates. Luxury Tax enhanced from 10% to 12% on hotels having rent of more than Rs. 10000 per day or more excluding heritage hotels of basic and classic category.
- 2% Entry Tax on all types of yarn.
Registration and Stamps
- For conservation and propagation of cow and its progeny 10% surcharge levied on stamp duty.
- Rate of stamp duty rationalized in case of partition of ancestral property, documents of family settlement and release of ancestral property.
- Upper limit of rupees fifty thousand of registration fee on sale agreements and other agreements removed.
- Rates of stamp duty rationalized on documents of acknowledgement, administration bond, adoption deed, share certificates, copy, counterpart and works contracts.
- Amount of fee payable for adjudication by Collector (Stamps) revised.
Special road tax on Tourist and contract carriage permit buses increased from Rs. 25,000 to Rs. 32,000 with relief to recognised tour operators in special road tax.
Measures for GST implementation
- A helpline to be established for GST so that problems faced by dealers can be addressed.
- State of the Art ‘Capacity Building and IT training Centre’ to be established at Commercial Taxes Department Headquarter for imparting training to all stakeholders.
- New Buildings of Zonal offices at Sriganganagar and Kota, Circle offices at Pratapgarh, Jaisalmer, Dausa, Dholpur, Tonk and ward office at Deeg.
New buildings of District Excise Offices at Rajsamand, Pali, Bundi, Sawai Madhopur, Dholpur, Hanumangarh and Tonk.
Big Data Technique to be used for Mining/Transport and Excise department also.
Local conservation fee on hotels and resorts within the periphery of 10 kms of tiger reserves of Ranthambhore and Sariska in phase-I to be used for development of local community.