Maha budget: Sales tax relief for industries
Taking a cue from states like Bihar, Himachal Pradesh and Gujarat, the state government has decided to waive off the entire penalty and 75% of the interest amount on sales tax duesmumbai Updated: Mar 19, 2016 01:28 IST
The state government that is making all the efforts to encourage industries and bring maximum investment in Maharashtra, in the state budget has decided to restart its special amnesty scheme that provides exit option to the closed and un-revivable units. It has also given major relief to the traders who have not paid sales tax between 2005 and 2012.
State finance minister Sudhir Mungantiwar, while presenting the state budget for 2016-17, said the scheme aims to allow closed and un-revivable units to use its immovable assets such as land.
Under the scheme, the government will waive off the entire interest and penalty, if the principal due amount is paid by the industrial unit at one go.
The scheme was part of the Maharashtra Industrial Policy 2013 and was operational between May 2, 2013, and March 31, 2014; and August 14, 2014 to March 31, 2015.
Mungantiwar announced the amnesty scheme will now come into force from April 1, 2016 to March 31, 2017.
He also announced an amnesty scheme for dues pending under sales tax.
Taking a cue from states like Bihar, Himachal Pradesh and Gujarat, the state government has decided to waive off the entire penalty and 75% of the interest amount on sales tax dues.
The waiver will be made available only if the dealer withdraws his appeal from the appellate authority. The objective is to unlock the revenue in appeals pending before the courts.
Also, the allocation for industries department has been reduced by Rs550 crore in the state budget. The finance minister has allocated spending of Rs2,686 crore for 2016-17, compared to Rs3,236 crore allocated last year.
The finance minister has also increased the limit for annual turnover of retailers from Rs50 lakh to Rs1 crore for getting benefits of composition scheme.
Chandrakant Salunkhe, founder and president, Maharashtra Industrial and Economic Development Association, said the budget is not compatible to the industries in relation to the Make in Maharashtra event in particular.
“The state government will get an investment of Rs8 lakh crore through the MoUs signed during the Make in India event, but I am not confident the government will achieve its target, as it has not announced any unique and attractive policy to attract investors for the implementation of the same,” Salunkhe told HT.