HIGHLIGHTS OF BUDGET SPEECH  PART-II ON THE BUDGET SPEECH    2003-2004

PRESENTED TO THE LEGISLATURE ON

THURSDAY, THE 20TH MARCH 2003

1)       VAT to be implemented from April 2003

2)       Features of VAT

          (a)  Merger of different Sales Tax Acts

          (b)  Registration threshold limit for dealers other than importers  Rs. 10 lakh.

          (c)  Standard VAT rate  12.5%

          (d)  Full tax rebates on most of the inputs.

          (e)  Tax rebate on stocks of trading goods  in six equal monthly instalments.

          (f)  Composition scheme for retailers, chemists, contractors. etc.

          (g)  Emphasis on self-assessment

          (h)  Tax audit at dealers place of business

          (i)  Package Schemes of Incentives exemption mode and deferal mode to continue.

3)   Rate of electricity duty  in respect of residential etc. consumers   increased from 10% to 12%.

4)   Rate of electricity duty in respect of commercial consumers enhanced from 12% to 13%.

5)   Stamp duty / Registration fee rates to be  rationalised.

6)   Less Entertainment duty on organisers of entertainment programmes.