Dear All,
  As we all know, the Chief Minister of Karnataka, Mr.Siddaramaiah has read out the Karnataka State Budget. Below are the major changes with regard to tax point of view.

1.       Proposed to tax the liquor consumers by introducing a value added tax of 5.5 percent on sale of liquor.

2.       Increase additional excise duty on beer from 122 per cent to 135 percent.

3.       Relief measures for the trade and commerce.

4.       Continue to exempt tax on paddy, rice, wheat, pulses and products of rice and wheat for one more year from April 2014.

5.       Reduce tax on scented arecanut powder other than mixtures from 14.5 per cent      to 5.5 percent.

6.       The registration limit from the present Rs 5 lakhs of annual turnover to Rs 7.5 lakhs as a relief to small dealers

7.      Increase the license fee on primary distilleries, Indian liquor manufacturing distilleries and Breweries (A Company that makes beer is called as brewer) by 50 per cent and on retail liquor shops to Rs 3 lakhs   from Rs 1 lakhs.

8.     Increase in luxury tax on minimum daily rent to Rs 750 from Rs 500.

9.   Waiver of penalty payable for default in filing of returns by small dealers who have no tax liability and  opt for cancellation of their registration.

10. Increase in minimum sale value fixed for obtaining electronic delivery note (e-SUGAM) from Rs.20000    to Rs.25000.

11. Exemption to works contractors from compulsory registration provision.

12. Suitable administrative measures to enable dealers to rectify mistakes in the returns which have no tax    implication.

13. Provision for single second appeal against reassessment for several tax periods of one financial year.

14. Provision for remission and reduction of Stamp Duty on instruments specified in the Government notification dated: 23-04-2003, with retrospective effect.

15. Exempts stamp duty on alternate sites allotted by the Bangalore Development Authority (BDA) in lieu of the land freed from government control (denotified) and on sale deeds executed under the state government's aerospace policy 2013-23.

The above are the few important highlights.