Here are some of the important points of Karnataka Budget presented by CM Siddaramaiah on 13th March 2015.
1. Profession Tax – The exemption limit is increased from Rs.10,000 to Rs.15,000. (Note: Currently, the employees who are drawing salary between Rs.10,000 and Rs.15,000 are paying Rs.150 per month as Profession Tax)
2. Profession Tax : exemption to senior citizens who have attained age of 60 years and above
3. VAT on Petrol and Diesel Increased by 1% – means oil will cost more from April 2015
4. Senior Citizen – The effective age of senior citizen is reduced from 65 to 60 ( Note: It is in line with the definition under Income Tax, Banks, etc)
5. VAT registration – The basic exemption limit for VAT registration is increased from Rs.750000 to Rs.1000000 (Note: this will help Small businessmen)
6. No Change in VAT rates – (means it will continue at 5.5% and 14.5%)
7. Road widening at Bangalore – Funds are allocated for widening of Bannerghatta Road, Sarjapur Road, Bellary Road, Tannery Road
8. Online registration of Property – The Sulabha Nondani Software will facilitate online time slot booking for registration of documents in any of the sub-registrar’ offices in the district
9. GST Implementation – Necessary steps to prepare Trade and Industry and department for smooth transition to Goods and Services Tax (GST) System (Note: Looks like Karnataka will one of the first states to adopt GST)
10. Claiming Input VAT credits – Provision to claim input tax credit of previous tax periods in the returns, filed during subsequent tax periods
11. Tax Appeals – Enabling dealers to file an appeal electronically before the first Appellate Authority and to receive orders electronically
12. Enabling the dealers to upload the details of CST statutory forms which will be linked to the turnover declared by the dealers in their returns
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