LATEST RATE CHANGE IN VAT – MP

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The Madhya Pradesh Government amended the VAT Act. The amendments in rates of tax of various goods are made applicable with effect from 05.04.2016.

 The goods on which tax rates are reduced

  • Bio-insecticides and bio-pesticide………………………………………………….NIL
  • Dry ber and ber powder……………………………………………………………….NIL
  • All kind of electric/battery run two wheelers, car and rickshaw………….NIL
  • Milking machine…………………………………………………………………………NIL
  • Bags and envelops made of biodegradable material………………………………..NIL
  • Parts and accessories ofbio fuel based smokeless stove,
  • gas stove and induction cook-top……………………………………………………5%
  • Soya Milk is now taxable ………………………………………………………………………………..5%
  • Heavy goods carriage vehicles
  • gross weight of which is more than 12000 kgs…………………………………..14%
  • Dialysis machine and Dialysis consumables………………………………..……………5%

 The goods on which tax rates are increased 

  • Bicycles with MRP above Ten Thousand………..……………………………………….5%
  • Gas Gyser…………………………………………………………………………………………………….14%
  • Cups, glasses, plates, bowls, dona-pattal
  • and spoons of plastic………………………………………………………………………14%
  • Glass Mirrors……………………………………………………………………………………………….14%
  • Woven Sacks and bags made of HDPE/LDPE/PP,
  • polythene bags, Plastic bags and sacks………………………………………………14%

 Some exemptions, relaxations or amendments were made in Entry Tax, CST or VAT through notifications earlier, now the time of these notifications have also enhanced

Some of ET notifications have been extended to 31-03-2017

Notification No. 06-2007 (Raw material for manufacturing of sarees on handloom exempt)

Notification No. 09-2007 (various items of specified industries)

Notification No. 25-2007 (water storage tank and bidi)

Notification No. 29-2007 (timber)

Notification No. 47-2010 (iron and steel, timber, metal, leather)

Notification No. 92-2010 (MPLUN)

Notification No. 16-2011 (tea, crude oil)

Notification No. 35-2014 (Heavy goods carriage vehicle, steel bars, old & 2nd hand vehicles)

CST Notification No. 05-2013 is also extended upto 31-03-2017

Some more changes were also made which is being notified as under 

  • Dealer having turnover upto Rs. Forty Lacs may opt for filing annual return instead of quarterly returns.
  • Interest on delayed payment of tax shall be 1.5% p.m. for first 3 months and thereafter 2% p.m.
  • Dealers whose quarterly liability is more than Rs. 6.25 crores shall now be required to deposit monthly tax on or before 6th of second and third month of each quarter.
  • Exercise books, graph books, drawing books and laboratory books notified for purpose of 2% reversal or ITR instead of 5% reversal w.e.f. 01-04-2016.
  • De-oiled Cake including all kinds of soya meal, cotton seed oil cake, mustard oil cake and Makka Khali made exempt from CST for sale against Form-C w.e.f. 01-04-2016.
  • Widening scope of notification for exemption of entry tax on natural gas e.f. 01-04-2016
  • Amendment in tax on various items of canteen stores.

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