Admin[By Shaleen Shah (Partner), VNCA]
Gujarat Value Added Tax (Amendment) Act, 2013 enacted through Gujarat Act No.9 of 2013
VAT Amendments proposed in Gujarat Budget 2013-14 presented on 24-Feb-2013, was enacted & received the assent of the Governor on 30-Mar-2013. The tax amendments made in the budget and notified vide Notification No. (GHN-4) will be effective from 1-Apr-2013. The important changes in VAT & Profession Tax laws are summarised as follows:
1. New sub-section (7A) is introduced in section 11 to provide that if a vendor has not paid tax collected on sales into the Government Treasury, the buyer’s `Input Tax Credit’ will be disallowed to that extent.
2. Through a newly introduced sub-section (8A) in section 34, power of instant assessment are granted to the Commissioner if there is reason to believe any tax evasion, excess claim of input tax credit or incorrect disclosure of tax liability.
3. The following changes in VAT & Profession Tax Rates have been passed as per Budget Proposals intimated earlier:
|
Sr. No. |
TOPIC |
DESCRIPTION |
OLD RATES |
NEW RATES |
|
1. |
Lump Sum Tax (VAT) for Small Dealers |
Increase in turnover limit for composition scheme u/s 14. |
Turnover limit Rs 50 Lacs |
Turnover limit Rs 75 Lacs |
|
2. |
Micro Irrigation System Equipments |
Exemption from tax [Entry 94 inserted] |
5% |
Exempted |
|
3. |
Educational Items for Students’ Studies |
Exemption from tax [Entry 95 inserted] |
5% |
Exempted |
|
4. |
Newar Made of Plastic |
Exemption from tax [Entry 40 substituted] |
5% |
Exempted |
|
5. |
Agarbatti Dust |
Exemption from tax [Entry 96 inserted] |
15% |
Exempted |
|
6. |
Carbon Credit |
Reduction in rate [Entry 41 amended] |
15% |
5% |
|
7. |
Cigarette |
Increase in rate [Entry 19A inserted & Entry 76A amended] |
25% |
30% |
|
8. |
Second Hand Two Wheelers & Commercial Vehicles |
Concessional tax on sale of second hand (used) motor car by a registered dealer is extended (subject to conditions) to sale of second hand (used): – two wheelers [Entry 97(i) inserted] – medium & heavy duty commercial vehicles [Entry 97(ii) inserted] Consequently, Purchase of second hand (used) two wheelers and medium & heavy duty commercial vehicles wholly exempted from Purchase Tax [Entry 98(i) & 98(ii) inserted] |
Motor Cars 1% / Max Rs.2000/- |
Motor Cars 1% / Max Rs.2000/-
Two Wheelers 1% / Max Rs.500/-
Heavy Comm. Vehicles 1% / Max Rs.5000/- |
|
9. |
Professional Tax (Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976) |
The basic exemption slab for payment of Profession Tax by salary & wage earners is increased. The rates above Rs.6000 are unchanged. [Notification No. (GHN-5)] |
Fully Exempt upto salary of Rs.3000 p.m. |
Fully Exempt upto salary of Rs.6000 p.m. |
[…] had informed you that the Gujarat Budget for 2013-14 introduced new sub-section (7A) in section 11 to provide that if a vendor has not paid tax […]