Major VAT Changes vide Haryana Budget 2016-17

By | March 22, 2016

State Finance Minister Capt. Abhimanyu on Monday presented Haryana Budget 2016-17 with the motto of – “Sabka Sath, Sabka Vikas”. It is second budget of Chief Minister M L Khattar led BJP government. The Budget of this year is increased by 28.4 percent to Rs. 88,781.96 as compared to previous year budget of Rs. 69,140 crore.
Rate of Tax

No new taxes are proposed in the budget.
However the tax rates are proposed to be reduced for some industries, which is expected to have beneficial impact across the sectors of the state economy. To be precise, below mentioned changes are proposed:-

  • Reduction in tax rate on footwear having MRP above Rs. 500/- from 12.5 per cent to 5 per cent and exempting shoe uppers from VAT to give boost to the footwear industry.
  • To encourage agro-based industries in the State, Tax exemption on ‘Khal’, ‘Binola’, ‘Besan’ and ‘cotton yarn manufactured in the State and Tax reduction on Vermicelli (Sewian) from 12.5 percent to 5 per cent to give incentive to industries, which use agriculture produce of the State for manufacturing.
  • To promote clean environment, tax rate reduction from 12.5 per cent to 5 per cent on sale of electrical vehicles.
  • Exemption on “Chhota Toka” (leafy vegetable cutter for kitchens) in order to provide relief to households and to encourage the Micro and Small Enterprises in the State.

Amnesty Scheme

An ‘Amnesty Scheme’ for granting relief in respect of tax, interest, penalty and other dues to the affected registered dealers whose goods have been lost or destroyed during the reservation agitation in February 2016 is also proposed to be introduced as a relief for Violence-hit Traders.
Submit Bill, Get Prize Scheme

To encourage the customers to obtain bills / invoices for goods purchased, the Government proposes to introduce “Submit Bill, Get Prize Scheme”. This will enhance compliance on the part of the sellers / dealers, resulting in more revenue to the State exchequer.
Real-estate sector

Deen Dayal Jan Awas Yojana is being implemented in the State to encourage the development of high-density plotted colonies with density of 240-400 persons per acre with project size of 5 to 15 acres with 65 per cent saleable area in Low and Medium Potential towns of the State, wherein small plots are made available through a liberal policy framework.
Further, the Licence fee and EDC rates have been reduced substantially, while the conversion charges & IDC stands waived off to attract developers to implement such projects in small towns. This policy shall put a check on development of unauthorised colonies on one hand and on the other it will make it possible to achieve the target of ‘Housing for All’.
The liberal and transparent New Integrated Licensing Policy (NILP) is expected to unleash a momentum of investment in real estate sector, ensuring enough supply of houses for all at economical prices. The Government has also initiated the process of Transferable Development Rights (TDR) for enabling small landowners to participate in the process of infrastructure development. The Government has also announced the Transit Oriented Development (TOD) 30 Policy providing for higher concentration of population with upgraded infrastructure around the Metro routes.
E-facilities

The State Government has started the online facility of e-Registration, e-Payment of tax and e-Filing of returns, e-tendering and issuance of C-Forms. The Government has launched e-Permits and e-Pass system for the excise licensees, to streamline the movement of liquor and to curb illegal business of it in the State.

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