Tweaks in VAT on flats, entertainment, sales to mop up Rs 150 cr
TEAM HERALD
teamherald@herald-goa.com
PANJIM: The Goa cabinet on Friday cleared an increase in TDS (tax deduction at source) from 2 to 5 per cent in a bid to encourage local trade, even as it made an amendment to tweak the value added tax (VAT) on sale of flats, entertainment, sales, wherein it sought to mop up an additional Rs 150 crore.
Minor changes in definition in the Goa tax on infrastructure are expected to earn another Rs 70 crore, Chief Minister Manohar Parrikar said wherein five more categories had been added to mop up additional infrastructure tax.
On TDS the chief minister said that the full concept of the budget was to encourage trade and it was observed that contractors do not use bills and buy items from outside the state.
“If they buy from locals, the tax can be off set, but if he buys from other states… or without bills it cannot be off set,” the chief minister said.
The government also decided to impose VAT on exhibitions held in Goa. “The organisers and those providing space for exhibitions would have to pay VAT,” the chief minister said. This meant that it would be made compulsory to obtain permission from the Commercial Taxes Department and pay an advance deposit before anything begins.
VAT would also be charged on flats for the first sale but resale would be exempted. The cabinet has also proposed an entry tax on unregistered dealers including couriers and transporters including those who use buses.
The responsibility is on the courier to collect the tax. This is expected to mop up around Rs 15 crore.
Also now all entertainment programmes (including casinos) are liable to pay entertainment tax and have to use pre stamped tickets the chief minister said. “They have to print the tickets and get them stamped by us,” he explained.
“Lots of rationalization… lots of ambiguity has been removed,” was how the chief minister explained the tweaks.
In case of disputes, before anybody approaches the tribunal they have to pay the total undisputed claim and 50 per cent of the disputed part and only then can he approach the tribunal, as per other amendments proposed by the cabinet.
INFRASTRUCTURE TAX: what’s new
In addition to the basic three categories enumerated in the budget viz: (a) coastal panchayat areas and Panjim, Mapusa, Ponda, Vasco and Margao; (B) village panchayats adjoining these five major towns as well as other municipal areas; (C) Other village panchayat areas, the cabinet on Friday added five new categories which would come under infrastructure tax including (1) agricultural buildings would be charged Rs 50 per square metre.(2) agro-based industries and agro related tourism buildings would be charged Rs 175 – half of the industrial types and (3) buildings for recreation or entertainment would be charged half of commercial or Rs 250 per square metre.
