Gujarat modified budget highlights (2014-15) are as under
Reduction in tax credit to 1% (before rate 2%) for purchase of goods made within the state and used in interstate sale. This change will be applicable from 1/10/2014. Benefits of this changes is not available to petroleum products and natural gas.
Exemption to LPG gas for domestic use in the state has been deleted. New mechanism will be applied for gas companies.
In state, many civil work contract and developer has evaded work contract tax. Work contract tax rate for lump sum payment is 0.6% with effect from 2003. To collect the tax retrospectively, the government will announce the scheme for payment of lump sum tax on work contract.
The payer can get exemption from interest and penalty.The scheme shall be effective for 180 days.
Stamp duty for transfer of immovable property will be increased at 3.5% from 1%.
If partner brings immovable property in partnership firm as capital, stamp duty at the rate of 3.5% will be levied on that transfer. This changes will be for credibility of partnership firm.
Change in Motor Vehicle Tax
Rs. 800 per year on per 1000 kilometers or part thereof will be levied on goods carriage vehicles having gross vehicle weight exceeding 7500 kilometers.
The rate of motor vehicle tax on designated omni bus and luxury or tourist designated omnibuses licensed to carry 6 to 12 passengers are increased to Rs. 1500 and Rs. 3000 respectively per seat per year.
The equal tax of Rs. 4500 will be levied on ordinary and luxury buses having license to carry passengers of 12 to 20.
The motor vehicle tax will be levied at the rate Rs. 4500 and Rs. 7800 per seat per year to ordinary bus and luxury bus having seating capacity more than 20.
The motor vehicle tax rate on sleeper buses having capacity for more than 20 passengers will be 13200 per year per berth.
There is new category introduced as super luxury designated buses. Tax will be levied at Rs. 9000 per seat per year and Rs. 15000 per year per berth on buses having capacity for more than 20 passengers.
7. Passenger tax on sale of ticket for state transport will be reduced to only 7.5% from 17.5%.
8. The entertainment tax on local cable TV will be collected by local bodies.
Surplus in modified budget estimates
Increase in VAT
Increase in Stamp duty
Increase in Motor vehicle Tax
Reduction in VAT
Reduction in Passenger tax
Transfer of collection of E.T. by local bodies
Estimated overall surplus
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Here, I have summarize the highlights of gujarat modified budget for year 2014-15. I hope it can help you. Don’t forget to share this post with your friends.