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Series of tax measures in budget

Friday, 6 June 2014 - 6:50am IST | Agency: dna

There were a slew of tax measures in state government's budget this year. None was a big break, with most being small benefits doled out; some others are aimed at increasing the state's cash coffers.

Working professionals and cotton growers were among those who were given minor benefits — minimum salary limit for Professional Tax was increased from Rs5,000 to Rs7,500 and tax on cotton was reduced from five per cent to two per cent.

Sugarcane Purchase Tax was totally exempted for 2013-14. Among the other measures to ease burden on businesses was increasing the turnover limit for filing audit report — from Rs60 lakh to Rs1 crore.

In a big push for the maintenance of aviation industry, the budget stated aicraft spares will be exempted from taxes. Sale of notified capital goods to department of central or state government will be liable to tax of five per cent.

Also, for products up to Rs1,000, there will be no Luxury Tax, for products up to Rs1,500, there will be 4% Luxury Tax, and for products exceeding Rs1,500, there will 10% Luxury Tax. New hotels in B and C zones will get concession in Luxury Tax. Late fee for VAT return has been reduced from Rs5,000 to Rs2,000 for a delay of up to one month.

To make the composition scheme more attractive, retailers will now have to pay one per cent of turnover or 1.5% of the taxable turnover instead of VAT.

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