Highlights of Maharashra State Budget 2011-12

Maharashtra Deputy Chief Minister presented the State budget for the year 2011-12 on 23 March 2011. The changes effected in various regulations shall be effective from a date to be notified unless otherwise specified.  Considering a satisfactory rise in the sales tax revenue by 26% over earlier year, it is proposed to retain VAT rate on goods covered under schedule E @ 12.5%.

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Highlights of Maharashra State Budget 2011-12

Maharashtra Deputy Chief Minister presented the State budget for the year 2011-12 on 23 March 2011. The changes effected in various regulations shall be effective from a date to be notified unless otherwise specified.  Considering a satisfactory rise in the sales tax revenue by 26% over earlier year, it is proposed to retain VAT rate on goods covered under schedule E @ 12.5%.

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U/s 14 – CST on Declared Goods to be @ 5% from 01-04-2011

It has been proposed in the Budget 2011-12 to increase the ceiling of 4% on declared goods under section 14 of CST Act to 5%. Currently State Governments cannot levy VAT more than 4% on declared goods.

Consequently all the goods in Schedule C of MVAT Act 2002 shall be taxable @ 5% from 01-04-2011 (as requisite amendment is done in MVAT Act 2002 through Maharashtra Finance Budget proposal announced on 23-03-2011).

 

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Finance Bill – 2011 passed in Lok Sabha

The Lok Sabha on Thursday passed the Finance Bill for 2011-12, with a special relief package for coffee growers, and tax concessions for health-care, auto and realty sectors, but without any change in the levies on petroleum products. Finance Minister Pranab Mukherjee moved the bill after the fresh amendments after a 50-minute final reply to the debate on the subject in the lower house of parliament, which was then passed by voice vote.

 

MajorHighlight of Amendment to Finance Bill 2011

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Budget 2011- Service Tax: Changes at a glance

Budget 2011- Service Tax: Changes at a glance

Service Tax: New Point of Taxation Rules, 2011

Point of Taxation Rules, 2011 have been framed vide notification 18/2011-ST and made effective
from 01.04.2011. These rules determine the point in time when the services shall be deemed to be
provided. The general rule will be that the time of provision of service will be the earliest of the
following dates:
i. Date on which service is provided or to be provided
ii. Date of invoice
iii. Date of payment
Consequential changes have also been made in the Service Tax Rules, 1994 to alter the payment of
service tax from receipt of payment to provision of service and also to permit adjustment of tax when
service is not finally provided.

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