26% increase in Sales Tax (VAT) collection in 2010-11 over 2009-10. Original target of Rs.35896 crore now increased to Rs.40415 crore. Estimated revenue for 2011-12 is set at Rs.46000 crore.
31% increase in Stamp Duty collection in 2010- 11 over 2009-10. Original Budget estimates of Rs.10478 crore now increased to Rs.14140 crore. Revenue for 2011-12 is estimated at Rs.15677 crore.
Revenue from State Excise Duty is estimated at Rs.5800 crore for 2010-11 and Rs.8500 crore for 2011-12.
Revised estimates of revenue from Motor Vehicle Tax for 2010-11 are at Rs.3471 crore, almost 21.36% higher than the original Budget estimates of Rs.2,860 crore. The Budget estimates for 2011-12 are pegged at Rs.4,000 crore.
Devolution from Central Government also increased substantially. As per the recommendations of the 13th Finance Commission, Maharashtra’s share in sharable taxes (other than service tax) has been increased from 4.997 % to 5.199%. The share in service tax has been increased from 5.063% to 5.281%. The total transfers for the year 2011-12 including devolution and grants is Rs.16593.9 crore.
Total tax receipts, including devolution, are estimated at Rs.84914 crore in revised estimates for 2010-11, about 13.64% higher than the original Budget estimates of Rs.74721 crore. The Budget estimates for 2011-12 are at Rs.97404 crore.
Rate of tax on ‘declared goods’ proposed to be increased from 4% to 5%.
No change in standard rate of VAT, continue to remain @ 12.5%.
Extension of time limit to exemption of essential commodities such as rice, pulses and their flours, turmeric, chillies, tamarind, gur, coconut, cumin seeds, fenugreek and parsley (Suva), papad, wet dates, Solapuri chaddars and towels, etc., up to 31st March 2012.
Fabrics and sugar continue to remain tax free.
Domestic LPG shall also continue to be tax free.
Concessional rate of tax on tea, i.e., 5%, proposed to be continued till 31st march 2012.
Tax on aviation turbine fuel, sold from places in Maharashtra other than Mumbai and Pune districts, is charged at the concessional rate of 4% up to 31-3-2011. This concession is now extended up to 31-3-2012.
Pre-fabricated domestic biogas units are proposed to be tax free.
No tax shall be levied on transfer of copyrights of films relating to their exhibition in theatres.
Telecasting rights of various entertainment and sports events are proposed to be included in the list of ‘intangible goods’, attracting tax @ 5%.
Rate of tax on dry fruits proposed to be reduced from 12.5% to 5%.
Rate of tax on carbonated soft drinks to be increased from 12.5% to 20%.
Sale of goods to electricity generating, transmission, distribution units, telecom, industry, defence and railways, etc., which was attracting concessional rate of tax @ 4% is now proposed to increased to 5%.
Rate of tax on goggles proposed to be increased to 12.5%.
Turnover limit of Composition Scheme for Bakers to be increased from Rs.30 lakh to Rs.50 lakh.
E-services to the dealers to be strengthened by using TINXSYS network. Business intelligence tools and data warehouse are also proposed to be adopted for quicker analysis of data.
Some amendments, in the MVAT Act and Rules are proposed, including amendments regarding certain procedures in respect of filing of returns, grant of refunds, voluntary registration and penalties, etc.
Stern actions are proposed to be taken against Hawala dealers.
The present procedure for payment of sugarcane purchase tax is proposed to be changed by amending the Sugarcane Purchase Tax Act.
Amnesty Scheme for sick sugar factories.
Proposal to waive interest and penalty to soap industry certified by Khadi & Village Industry Board.
Proposal to change the scheme of levying tax on sale of liquor. First-point tax proposed in the hands of manufacturers/importers. Once tax is paid by the manufacturer or importer, subsequent dealers will not be required to pay any tax. However, the rate of tax on liquor served in hotels having 4-star or higher rating shall be 20%, while in other bars, restaurants and clubs is proposed to be @ 5% (without set-off benefits).
Rate of excise duty on manufacture of country liquor an IMFL is proposed to be increased.
Uniform rate of Stamp Duty to be charged @ 0.005% on transactions taking place at stock and commodity exchanges, including transactions of securities, futures, delivery-based, non-delivery-based whether for clients or on own account.
Transactions of transfer of long-held tenancy rights of house properties to attract Stamp Duty.
