VAT PROPOSALS IN DELHI BUDGET 2013-14

. The threshold limit for registration under VAT has been raised from R10 lakh to R20 lakh. This means good news for small traders. 

. There will be a facility for online registration to reduce physical interface between the taxman and the taxpayer. 

. There will be a uniform tax period for all dealers irrespective of their turnover, i.e. quarterly. This will allow dealers to file only four returns yearly instead of twelve.

. On depositing tax due, penalties up to 80% of admitted tax would be mitigated. This would encourage dealers to voluntarily admit to tax liability 

. Tax on LED lights reduced from 12.5 % to 5%. This will help save power and improve environment. 

. VAT on desi ghee reduced from 12.5 % to 5%. 

Items exempted from VAT: 

. Chilli spray used for self-defence 

. Singhara, kuttu and their atta, sendha namak used by people during fast 

. Empty pencils/geometry box and also on charki and manja used for flying kites 

. Organic gulal and organic colours 

. All types of footwear with MRP up to R500 provided MRP is indelibly marked 

. The refuse-derived fuel (generated from waste), presently taxed at 12.5 %, is exempted. This means more energy production from waste management. 

. Tiles and kerbstones made from malba (construction debris). This will encourage use of malba. 

Budget Highlights 2013

Budget Speech 2013-14

Hindustan Times, New Delhi, 21-03-2013