Four amendment bills related to Commercial Taxes Department passed in current Vidhan Sabha session have become acts after Governor signed the same today. The provisions of amended acts take force from April 1, 2011.
As per amendment in Madhya Pradesh Entertainment Tax and Advertisement Act, taxes will be payable on beauty parlour, Spa, Marriage Hall and luxurious items being provided by caterers besides on luxurious items and facilities at hotels. Under the new tourism policy, taxes on luxurious room to Rs 2000 per day will be exempted under the new act.In the entertainment programmes, taxes will be levied on advertisements aired by cable television and tele-marketing under new act. However, advertisements on newspapers, radio and televisions will be exempted from taxes.
Under the new Act, entertainment taxes will be levied on entertainment programmes being provided any equipments and technology. In order to protect old cinema theatres, these theatres have been exempted from taxes on ticketing upto Rs 30.
In Stamp Duty Act, the weaker sections have been exempted from stamp duty on building and land registration. Stamp duty rate has been reduced to five percent from 7.5 percent on transferring land and building from next year. The same will be applicable for registration executed in favour of women.
In building construction sector, stamp duty has been raised to 3 percent from 2 percent on ‘development agreement’. Similarly, stamp duty on ‘power of attorney’ has also been increased to Rs 1000 from Rs 100 for the people giving one year power of attorney for selling immovable properties to others.
With a view to curbing the tendency of evading VAT payable on construction material, the taxation will be done as per the VAT principles on house sale transactions. As a result, five percent tax will be levied after deducting the price of land and ITR will be available on VAT paid building materials. VAT rate has been reduced to five percent from 13 percent on five items: pots, plates and spoons made by paper and plastic C.F.L bulb utpo Rs 150 per unit as well as foot valve being used for irrigation are included.
Khali (de-oiled cake) of mustard, garbage made fuel, ‘Panchamritam’, ‘Namakatti’, ‘Vibhuti’ have been exempted from VAT. VAT has been reduced to five percent from 13 percent on natural gas being used as fuel in manufacturing units.
Under the entry taxes, some items have been exempted from entry taxes like tea mixing tea, crude edible oil, coated hot rolled coils, colour coated, galvanized cold rolled coil exporting to other states for selling.
With a view to generating additional revenue for the development of urban infrastructure, the state government has increased entry tax on coal to 3 percent from 2 percent. Besides, VAT rate has been raised to five percent from two percent on the steal and iron being imported from outside of the state for fabrication work. VAT rate has also been increased from two percent to five percent for importing iron and steal for the purpose of selling in the state.
Under the excise, bottling fee on per bulk litre has been increased from Rs 6 to Rs 10 for consumption in the state being provided under the frenchise facility by the national level manufacturers. Besides, importing fee has also been raised from Rs 11 per bulk litre to Rs 15 per bulk litre.