I WANT TO KNOW IF THERE IS ANY CHANGE IN VAT (MAHARASHTRA STATE) W.E.F. 01.04.2015? ONE OF OUR PUNE CLIENT TOLD THAT GOVT. IS TO ABOLISH LBT FROM 01.04.2015 & THERE WILL BE SURCHARGE ON VAT INSTEED?
16 March 2015
No. LBT has not been abolished. Industry has been proposing to abolish LBT. Announcement shall be made during Maharashtra Budget presentation on 18 March. Refer the below link for more details.
18 March 2015
Extract of Maharashtra Budget speech. The budget was presented today.
16. Speaker Sir, the Government is committed to abolition of Local Body Tax. Due to abolition of Local Body Tax, compensation of rupees six thousand eight hundred seventy five crore will be required to be given to the Municipal Corporations excluding Mumbai. This loss of revenue will be compensated by enhancing rate of tax under Value Added Tax Act. The enhanced rate of tax will be applicable to the whole State. A Revenue Neutral Rate has been recommended considering the share of increased tax collection to be given to the areas where Local Body Tax is not levied.
Mumbai Municipal Corporation gets substantial revenue, by levying Octroi on Crude Oil. This Octroi amount is collected by Oil Companies as part of State Specific Duty from all consumers in the State. This aspect is also required to be taken into account.
Extensive deliberations are required on the enhancement in tax rates under Value Added Tax. The Local Body Tax will be abolished from 1st August, 2015.
The revenue received on account of increase in tax rates under MVAT Act will be assigned to the Municipal Corporations and demand will be tabled on account of grants to be given to other areas, as per requirement.
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