The Hindu Business Line : Bengal to exempt tea industry from farm IT

Announcements
Stamp duty rates on deeds of conveyance for transfer of immovable property are to be reduced to six per cent for municipal areas and five per cent for rural areas.
Luxury tax rates on restaurants to be revised

Kolkata , June 23

The West Bengal Government has proposed to exempt the State tea industry from payment of agricultural income tax for three years with effect from April 1.

In a bid to revive the ailing industry, it has also proposed to introduce a scheme of settlement of dues on account of agricultural income tax payable by the industry up to March 31.

Placing the State Budget for 2006-07 at the Assembly here on Friday, the West Bengal Finance Minister, Dr Asim Kumar Dasgupta, has also proposed to reduce the rate of stamp duty on deeds of conveyance for transfer of immovable property to six per cent for municipal areas and five per cent for rural areas.

The Finance Minister has also proposed that the additional stamp duty now being levied under the Calcutta Improvement Act 1911 and the Howrah improvement Act 1956 will be withdrawn. Dr Dasgupta has also proposed to revise the rate of luxury tax on restaurants and also introduce luxury tax on hotels outside the Kolkata Metropolitan Planning Area.

The revised luxury tax rates on restaurants will vary between Rs 500 and Rs 2,000 for every 10 sq m or part thereof depending upon the location.

In the case of hotels, the rate will be 10 per cent of the daily charges for an occupied room provided with luxury fittings irrespective of the location. The measure is expected to yield an additional revenue of Rs 2 crore in the current fiscal.

Initial deficit

If the proposals for planned and non-planned expenditure for the current year are taken together, then the total comes to Rs 42,720.53 crore against which the total receipts will be Rs 42,668.53 crore leaving an initial deficit of Rs 52 crore.

According to the Finance Minister, the additional mobilisation of resources through the new tax measures and simplification of procedures will be Rs 46 crore during this fiscal, thereby leaving an uncovered deficit of Rs 6 crore.

VAT Act simplified

Dr Dasgupta has also simplified the formalities under the State VAT Act by introducing a provision of deemed registration, introduction of one-time opportunity for registration by submitting a self-declaration, payment of tax by dealers not yet registered, exemption from production of declaration form in respect of sales to the closed public undertakings, withdrawal of mandatory tax clearance certificates by works contracts for VAT liability for entering into the contract with the Government and other specified authorities and withdrawal of purchase tax in all cases where goods are purchased for use in manufacture or resale to avoid unnecessary duplication.

And the Finance Minister, by way of relief to the common man, has proposed to exempt bed sheets, bed spreads, bed covers, pillow covers, towels and napkins from levy of VAT.