21 March, 2013

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Delhi Budget 2013 :- DVAT Tax Proposals

Key Features of Delhi Budget 2013
Procedural Proposals
    Ø  In case of Small Traders, the threshold limit for Registration under Vat, to be raised from Rs.10 Lakh to 20 Lakh.
    Ø  As per new composition scheme, the dealers would be allowed to pay tax based on their overall turnover with effect from April 1, 2013.
    Ø  It is proposed that, subject to depositing the tax due, penalties upto 80% of admitted tax would be automatically mitigated, even in cases where field inspections are carried out.

Ø  The dealers will now have to fill four returns yearly instead of twelve returns.
Ø  Online registration under Delhi Value Added Tax and Central Sales Tax Act under which, entire chains of events including registrations, filing of returns, payment of Tax, downloading of Central Statutory Forms and Self- Assessment

  Rate Related Proposals
Ø  The item ‘Organic manure’ produced by processing of Municipal Solid Waste (MSW) is not taxable under Delhi VAT Act. The Refuse Derived Fuel, which can be an input for energy production, now it is exempted.
Ø  The use of malba in the manufacturing of tiles and kerbstones, it is exempted from levy of VAT on tiles and kerbstones made from construction malba.
Ø  The rate of tax on LED lights is reduced from 12.5% to 5%.
Ø  VAT on Desi Ghee is reduced from 12.5% to 5%. Butter, being a substitute of Desi Ghee, is being charged VAT @ 5%.
Ø  Following items are also proposed to be exempted from levy of VAT:
·         Chilly spray used for self- defence.
·         Singhara, Kuttu and their Atta, Sendha Namak used by people during fast.
·         Empty pencil/ Geometry box and also on charki and manza used for flying kites.
·         Organic gulal and organic colours.
·         All types of footwear having MRP upto rupees five hundred provided that the MRP is indelibly marked or embossed on the footwear itself.
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