IDTX/16/2010 8 April 2010
Haryana VAT rate changes Delhi VAT amendment imposing restrictions to input tax credit
Madhya Pradesh VAT amendments
Madhya Pradesh Central Sales Tax amendments
Madhya Pradesh Entry Tax amendments
Contacts
Haryana VAT rate changes1
Effective from 1 April, 2010, the Haryana Government has introduced „Additional Tax‟ in the nature of surcharge. The Additional Tax is required to be calculated at 5% of the amount of VAT.
The Additional Tax shall not apply to:
Declared goods as specified under Section 14 of the Central Sales Tax Act, 1956 and
Retailers who have preferred Composition option
Delhi VAT amendment imposing restrictions to input tax credit2
The Delhi Government has imposed certain restrictions and conditions subject to which a dealer can avail input tax credit. The amendments, effective from 1 April, 2010, are as follows:
Input tax credit will be available to a dealer for a tax period on the goods purchased during that tax period
- proportionately to the extent the purchased goods have been put to sale and
- used directly or indirectly for the purpose of making sales liable to tax under Section 3 or export of goods out of India or to other States.
In respect of the goods that have been put to sale, the unutilized input tax credit on account unsold goods lying in stock at the end of the tax period is allowed to be carried forward to the subsequent tax periods till such stock is sold by the dealer.
However, provisions pertaining to carry forward of unutilized input tax credit shall not apply to prevent a claim or refund of a dealer in respect of:
- sale already effected during the relevant tax period
- sale in the course of export out of India
- sale in the course of inter-State trade or commerce
- manufacturer purchasing raw materials at a higher rate for use in manufacture of finished goods subject to tax at a lower rate
Input tax credit shall not be allowed to the purchasing dealer unless the selling dealer has either deposited the tax with the Government or has lawfully adjusted the same against output tax liability and has correctly reflected in the returns filed.
Where the goods purchased by a dealer are sold at a price lower than their purchase price, the tax credit on such purchases shall be reduced proportionately in the tax period during which the goods are sold. The tax credit is required to be so reduced only in situations where the purchasing dealer receives credit note from the selling dealer on account of discount, omission, rebate, remission in price or incentive resulting in reduction of the purchase price. Further, input tax credit on purchase of goods shall be restricted to the amount of tax payable on sale of the said goods. However, the above restrictions on input tax credit shall not apply in the following situations:
- sale by a dealer at a loss in the ordinary course of business
- sale by specified oil companies in pursuance of administered price
Madhya Pradesh VAT amendments3
The Madhya Pradesh Government has enacted the Madhya Pradesh Value Added Tax (Amendment) Act, 2010. Some of the significant changes under the said Act are as follows:
Effective from 1 April, 2010, the rate of tax on goods falling under Part IV of Schedule II has been enhanced from 12.5% to 13%.
Effective retrospectively from 1 August, 2009, if a dealer holds separate registrations for more than one unit owned by it in Madhya Pradesh, inter-unit transfer of goods specified in Schedule II to the Madhya Pradesh Value Added Tax Act for the purpose of sale, consumption or use in/for manufacture of goods specified in the Schedule II shall be construed as independent transactions of sale or purchase.
Madhya Pradesh Central Sales Tax amendments4
Goods specified under Part III of Schedule II to the Madhya Pradesh Value Added Tax Act enjoyed exemption from Central Sales Tax till 31 March, 2010 subject to the condition that the goods have already been subjected to tax under the Madhya Pradesh Value Added Tax Act. The exemption has now been extended till 31 March, 2011.
Madhya Pradesh Entry Tax amendments
Levy of entry tax on goods brought for construction purpose5
Effective from 1 April, 2010, persons bringing goods specified in Schedule II of the Madhya Pradesh VAT Act into any local area within Madhya Pradesh are liable to entry tax if the said goods are brought for the purpose of construction and a subsequent sale or letting out of:
five or more residential houses/flats or
a commercial building of more than 5,000 square feet
The applicable rate of entry tax in respect of the subject goods will be the rate at which these goods are liable to VAT under the Madhya Pradesh VAT Act.
Further, entry tax liability will be only on those persons in whose hands the subject goods have not suffered tax under the Madhya Pradesh VAT Act.
Entry tax rate change6
Effective from April 1, 2010, the Government of Madhya Pradesh has revised the rate of entry tax on specified goods.
Source
1. Notification No. Leg.3/2010 dated 2 April, 2010
2. The Delhi Value Added Tax (Amendment) Act, 2009 read with Notification Nos. F.3(23)/Fin.(T&E)/2009-10./JS/Fin/286 and F.3(23)/Fin.(T&E)/2009-10/JS/Fin/287 both dated 1 April, 2010
3. The Madhya Pradesh Value Added Tax (Amendment) Act, 2010 published in Official Gazette on 1 April, 2010
4. Notification No.F-A3-60/2005/1/V(49) dated 1 April, 2010
5. Notification No.F-A3-2/2010/1/V(40) dated 31 March, 2010 read with Notification No.F-A3-2/2010/1/V(41) dated 31 March, 2010
6. Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar (Sanshodhan) Adhiniyam, 2010 read with Notification No.F-A3-2/2010/1/V(46) dated 1 April, 2010
Contacts
Mumbai
264-265, Vaswani Chambers,
Dr. Annie Besant Road,
Worli, Mumbai 400 030.
Tel: + 91 (022) 6619 8600 Fax: + 91 (022) 6619 8401
Bangalore
Deloitte Centre, Anchorage II,
100/2, Richmond Road,
Bangalore 560 025.
Tel: +91 (080) 6627 6000 Fax: +91 (080) 6627 6409
Delhi/Gurgaon
Building 10, Tower B, 7th Floor, DLF Cyber City,
Gurgaon 122 022
Tel : +91 (0124) 679 2000 Fax : + 91 (0124) 679 2012
Chennai
No.52, Venkatanarayana Road, 7th Floor, ASV N Ramana Tower,
T-Nagar, Chennai 600 017. Tel: +91 (044) 6688 5000 Fax: +91 (044) 6688 5019
Kolkata
Bengal Intelligent Park Building, Alpha, 1st floor, Plot No –A2, M2 & N2, Block – EP & GP Sector – V, Salt Lake Electronics Complex, Kolkata - 700 091.
Tel : + 91 (033) 6612 1000
Fax : + 91 (033) 6612 1001
Ahmedabad
“Heritage” 3rd Floor,
Near Gujarat Vidyapith,
Off Ashram Road,
Ahmedabad – 380 014. Tel: + 91 (079) 2758 2542
Fax: + 91 (079) 2758 2551
Hyderabad
1-8-384 & 385, 3rd Floor, Gowra Grand S.P.Road, Begumpet,
Secunderabad – 500 003.
Tel: +91 (040) 4031 2600
Fax:+91 (040) 4031 2714
Vadodara
Chandralok,
31, Nutan Bharat Society,
Alkapuri, Vadodara – 390 007
Tel: + 91 (0265) 233 3776
Fax: +91 (0265) 233 9729
Disclaimer
These materials and the information contained herein are provided by Deloitte Touche Tohmatsu India Private Limited (DTTIPL) and are intended to provide general information on a particular subject or subjects and are not an exhaustive treatment of such subject(s).Accordingly, the information in these materials is not intended to constitute accounting, tax, legal, investment, consulting, or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. None of Deloitte Touche Tohmatsu, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person who relies on these materials and the information contained therein. These materials and the information contained therein are provided as is, and DTTIPL makes no express or implied representations or warranties regarding these materials or the information contained therein. Without limiting the foregoing, DTTIPL does not warrant that the materials or information contained therein will be error-free or will meet any particular criteria of performance or quality. DTTIPL expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy. Your use of these materials and information contained therein is at your own risk, and you assume full responsibility and risk of loss resulting from the use thereof. Deloitte Touche Tohmatsu, its member firms, or its and their respective affiliates will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials or the information contained therein. If any of the foregoing is not fully enforceable for any reason, the remainder shall nonetheless continue to apply.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its Member Firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in over 140 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's 169,000 professionals are committed to becoming the standard of excellence.
Deloitte's professionals are unified by a collaborative culture that fosters integrity, outstanding value to markets and clients, commitment to each other, and strength from cultural diversity. They enjoy an environment of continuous learning, challenging experiences, and enriching career opportunities. Deloitte's professionals are dedicated to strengthening corporate responsibility, building public trust, and making a positive impact in their communities.
© 2010 Deloitte Touche Tohmatsu India Private Limited
Deloitte Touche Tohmatsu India Private Limited. Registered Office: 12, Dr. Annie Besant Road, Opp. Shivsagar Estate, Mumbai 400 018. India.
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Haryana VAT rate changes Delhi VAT amendment imposing restrictions to input tax credit
Madhya Pradesh VAT amendments
Madhya Pradesh Central Sales Tax amendments
Madhya Pradesh Entry Tax amendments
Contacts
Haryana VAT rate changes1
Effective from 1 April, 2010, the Haryana Government has introduced „Additional Tax‟ in the nature of surcharge. The Additional Tax is required to be calculated at 5% of the amount of VAT.
The Additional Tax shall not apply to:
Declared goods as specified under Section 14 of the Central Sales Tax Act, 1956 and
Retailers who have preferred Composition option
Delhi VAT amendment imposing restrictions to input tax credit2
The Delhi Government has imposed certain restrictions and conditions subject to which a dealer can avail input tax credit. The amendments, effective from 1 April, 2010, are as follows:
Input tax credit will be available to a dealer for a tax period on the goods purchased during that tax period
- proportionately to the extent the purchased goods have been put to sale and
- used directly or indirectly for the purpose of making sales liable to tax under Section 3 or export of goods out of India or to other States.
In respect of the goods that have been put to sale, the unutilized input tax credit on account unsold goods lying in stock at the end of the tax period is allowed to be carried forward to the subsequent tax periods till such stock is sold by the dealer.
However, provisions pertaining to carry forward of unutilized input tax credit shall not apply to prevent a claim or refund of a dealer in respect of:
- sale already effected during the relevant tax period
- sale in the course of export out of India
- sale in the course of inter-State trade or commerce
- manufacturer purchasing raw materials at a higher rate for use in manufacture of finished goods subject to tax at a lower rate
Input tax credit shall not be allowed to the purchasing dealer unless the selling dealer has either deposited the tax with the Government or has lawfully adjusted the same against output tax liability and has correctly reflected in the returns filed.
Where the goods purchased by a dealer are sold at a price lower than their purchase price, the tax credit on such purchases shall be reduced proportionately in the tax period during which the goods are sold. The tax credit is required to be so reduced only in situations where the purchasing dealer receives credit note from the selling dealer on account of discount, omission, rebate, remission in price or incentive resulting in reduction of the purchase price. Further, input tax credit on purchase of goods shall be restricted to the amount of tax payable on sale of the said goods. However, the above restrictions on input tax credit shall not apply in the following situations:
- sale by a dealer at a loss in the ordinary course of business
- sale by specified oil companies in pursuance of administered price
Madhya Pradesh VAT amendments3
The Madhya Pradesh Government has enacted the Madhya Pradesh Value Added Tax (Amendment) Act, 2010. Some of the significant changes under the said Act are as follows:
Effective from 1 April, 2010, the rate of tax on goods falling under Part IV of Schedule II has been enhanced from 12.5% to 13%.
Effective retrospectively from 1 August, 2009, if a dealer holds separate registrations for more than one unit owned by it in Madhya Pradesh, inter-unit transfer of goods specified in Schedule II to the Madhya Pradesh Value Added Tax Act for the purpose of sale, consumption or use in/for manufacture of goods specified in the Schedule II shall be construed as independent transactions of sale or purchase.
Madhya Pradesh Central Sales Tax amendments4
Goods specified under Part III of Schedule II to the Madhya Pradesh Value Added Tax Act enjoyed exemption from Central Sales Tax till 31 March, 2010 subject to the condition that the goods have already been subjected to tax under the Madhya Pradesh Value Added Tax Act. The exemption has now been extended till 31 March, 2011.
Madhya Pradesh Entry Tax amendments
Levy of entry tax on goods brought for construction purpose5
Effective from 1 April, 2010, persons bringing goods specified in Schedule II of the Madhya Pradesh VAT Act into any local area within Madhya Pradesh are liable to entry tax if the said goods are brought for the purpose of construction and a subsequent sale or letting out of:
five or more residential houses/flats or
a commercial building of more than 5,000 square feet
The applicable rate of entry tax in respect of the subject goods will be the rate at which these goods are liable to VAT under the Madhya Pradesh VAT Act.
Further, entry tax liability will be only on those persons in whose hands the subject goods have not suffered tax under the Madhya Pradesh VAT Act.
Entry tax rate change6
Effective from April 1, 2010, the Government of Madhya Pradesh has revised the rate of entry tax on specified goods.
Source
1. Notification No. Leg.3/2010 dated 2 April, 2010
2. The Delhi Value Added Tax (Amendment) Act, 2009 read with Notification Nos. F.3(23)/Fin.(T&E)/2009-10./JS/Fin/286 and F.3(23)/Fin.(T&E)/2009-10/JS/Fin/287 both dated 1 April, 2010
3. The Madhya Pradesh Value Added Tax (Amendment) Act, 2010 published in Official Gazette on 1 April, 2010
4. Notification No.F-A3-60/2005/1/V(49) dated 1 April, 2010
5. Notification No.F-A3-2/2010/1/V(40) dated 31 March, 2010 read with Notification No.F-A3-2/2010/1/V(41) dated 31 March, 2010
6. Madhya Pradesh Sthaniya Kshetra Me Mal Ke Pravesh Par Kar (Sanshodhan) Adhiniyam, 2010 read with Notification No.F-A3-2/2010/1/V(46) dated 1 April, 2010
Contacts
Mumbai
264-265, Vaswani Chambers,
Dr. Annie Besant Road,
Worli, Mumbai 400 030.
Tel: + 91 (022) 6619 8600 Fax: + 91 (022) 6619 8401
Bangalore
Deloitte Centre, Anchorage II,
100/2, Richmond Road,
Bangalore 560 025.
Tel: +91 (080) 6627 6000 Fax: +91 (080) 6627 6409
Delhi/Gurgaon
Building 10, Tower B, 7th Floor, DLF Cyber City,
Gurgaon 122 022
Tel : +91 (0124) 679 2000 Fax : + 91 (0124) 679 2012
Chennai
No.52, Venkatanarayana Road, 7th Floor, ASV N Ramana Tower,
T-Nagar, Chennai 600 017. Tel: +91 (044) 6688 5000 Fax: +91 (044) 6688 5019
Kolkata
Bengal Intelligent Park Building, Alpha, 1st floor, Plot No –A2, M2 & N2, Block – EP & GP Sector – V, Salt Lake Electronics Complex, Kolkata - 700 091.
Tel : + 91 (033) 6612 1000
Fax : + 91 (033) 6612 1001
Ahmedabad
“Heritage” 3rd Floor,
Near Gujarat Vidyapith,
Off Ashram Road,
Ahmedabad – 380 014. Tel: + 91 (079) 2758 2542
Fax: + 91 (079) 2758 2551
Hyderabad
1-8-384 & 385, 3rd Floor, Gowra Grand S.P.Road, Begumpet,
Secunderabad – 500 003.
Tel: +91 (040) 4031 2600
Fax:+91 (040) 4031 2714
Vadodara
Chandralok,
31, Nutan Bharat Society,
Alkapuri, Vadodara – 390 007
Tel: + 91 (0265) 233 3776
Fax: +91 (0265) 233 9729
Disclaimer
These materials and the information contained herein are provided by Deloitte Touche Tohmatsu India Private Limited (DTTIPL) and are intended to provide general information on a particular subject or subjects and are not an exhaustive treatment of such subject(s).Accordingly, the information in these materials is not intended to constitute accounting, tax, legal, investment, consulting, or other professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. None of Deloitte Touche Tohmatsu, its member firms, or its and their respective affiliates shall be responsible for any loss whatsoever sustained by any person who relies on these materials and the information contained therein. These materials and the information contained therein are provided as is, and DTTIPL makes no express or implied representations or warranties regarding these materials or the information contained therein. Without limiting the foregoing, DTTIPL does not warrant that the materials or information contained therein will be error-free or will meet any particular criteria of performance or quality. DTTIPL expressly disclaims all implied warranties, including, without limitation, warranties of merchantability, title, fitness for a particular purpose, non-infringement, compatibility, security, and accuracy. Your use of these materials and information contained therein is at your own risk, and you assume full responsibility and risk of loss resulting from the use thereof. Deloitte Touche Tohmatsu, its member firms, or its and their respective affiliates will not be liable for any special, indirect, incidental, consequential, or punitive damages or any other damages whatsoever, whether in an action of contract, statute, tort (including, without limitation, negligence), or otherwise, relating to the use of these materials or the information contained therein. If any of the foregoing is not fully enforceable for any reason, the remainder shall nonetheless continue to apply.
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its Member Firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in over 140 countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed wherever they operate. Deloitte's 169,000 professionals are committed to becoming the standard of excellence.
Deloitte's professionals are unified by a collaborative culture that fosters integrity, outstanding value to markets and clients, commitment to each other, and strength from cultural diversity. They enjoy an environment of continuous learning, challenging experiences, and enriching career opportunities. Deloitte's professionals are dedicated to strengthening corporate responsibility, building public trust, and making a positive impact in their communities.
© 2010 Deloitte Touche Tohmatsu India Private Limited
Deloitte Touche Tohmatsu India Private Limited. Registered Office: 12, Dr. Annie Besant Road, Opp. Shivsagar Estate, Mumbai 400 018. India.
Home | Add Deloitte as safe sender
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