MP makes changes to tax law
To offer much-needed relief to traders in the state, the government has introduced another amendment to the Value Added Tax Act, 2012. The state Assembly is debating the Bill on Tuesday and it is most likely to be cleared by tomorrow.
The government has exempted all components of blood from any kind of tax and has put all aircrafts under one category for fuelling.It has also offered certain relief to traders and businessmen from the real estate industry. A total of 14 amendments have been introduced to the existing Act.
“The amendment will be a relief to those furniture manufacturers who were imposed dual tax on input and output, particularly in case of timber. They pay input tax (on timber) as well as output tax, ie, tax on finished goods,” a highly placed official in the commercial tax department told Business Standard, for example doors and windows manufacturers will be entitled for input rebate on these materials used in building construction."
Small scale industry associations and various trade chambers had a long pending demand to abolish the anomaly in the existing tax system. Further the existing Act has put “Aviation Companies” to levy aviation turbine fuel. “This created an ambiguity in the act. A private chartered plane owner and a passenger aircraft were falling under similar category. Now the word Aviation company has been deleted and to levy tax on aviation turbine fuel purchase,” the official said.
Similarly multi-point VAT provisions on petrol and diesel transported through road has also been clarified in the VAT. “Now petroleum firms will have to collect tax on retail sale of the products,” the officials said and added, “The amendment would offer more comfort to the traders’ community.”
Meanwhile the state has presented second supplementary budget for Rs 5180 crore for the current year 2012-13. Of this a major share will go to mining, police reforms, irrigation and tribal sub-plan besides higher education and financial assistance to urban administrative bodies.n