Impact of Rajasthan State Budget
presented on 8th July, 2009

M.L. Patodi, Advocate

The Hon’ble Chief Minister of the State of Rajasthan presented the State Budget for the year 2009-10 on 8th July, 2009. Based on the Budget Speech and notifications, there are the following changes :

1. Under Rvat Act

i. The general rate of tax has been increased to 14% from 12.5% w.e.f. 8th July, 2009.

ii. When there is an interstate sale of goods, taxable at the general rate, to unregistered dealers, the rate of Central Sales Tax will also be 14% instead of 12.5%.

2. Requirement of vat-49 (Road Permit) When goods are despatched from Rajasthan

i. Now there is no requirement of issuing VAT-49 while dispatching the material as inter-state sale except on the following items :

1. Jeera
2. Iron and Steel excluding Stainless Steel;
3. Soya Bean;
4. Gram (Chana) and its Dal
5. Dhania
6. Tendu Patta
7. Raw or Refined Edible Oil
8. Oil Seeds.

ii. For Branch Transfer/Consignment Sale, there is a requirement of issuing VAT-49 along with the goods except on the following items :

i. Cement;
ii. Chemical Fertilisers;
iii. Automobiles; and
iv. Tyres & Tubes of Automobiles.

iii. Against the Export Sale, there is no requirement of Form VAT-49 along with the goods.

3. Requirement of vat-47(Road Permit) for bringing the goods in Rajasthan from other states as interstate purchase

i. After the amendment dated 8th July, 2009, for bringing the goods from other states, VAT-47 is required only on notified goods (38 items as per notification No. F.12(84)FD/Tax/2009-21) which are as follow :

1. All kinds of furniture including moulded furniture.

2. All kinds of lubricants

3. All kinds of mattresses, cushion, pillows, all types of sheets and other articles made from foam rubber or plastic foam or other synthetic foam and rubberized coir mattresses.

4. All kinds of toilet & washing soap & detergents.

5. All goods made of cement.

6. All types of bearings.

7. All types of sanitary goods including sanitary pipes & fittings.

8. All types of electrical goods including UPS and CVTS.

9. Audio & Video cassettes.

10. Butter & Deshi Ghee.

11. Computers, its softwares floppies and parts.

12. Cooling equipments including air conditioners and refrigerators

13. Copper in all its forms including wires.

14. Dry fruits including Clove, Cardamom, Pepper & Betel Nut.

15. Raw or refined edible oil & Hydrogenated vegetable oil.

16. Electronic items including TV, VCR, VCP

17. Gur.

18. Iron & steel as defined U/s 14 of the CST Act.

19. Parts of Automobile & Tractor except when used in manufacturing of automobiles or tractors.

20. Pan masala, Gutkha and Churi.

21. Paints, Varnishes, Colour & Dyes.

22. Timber, Plywoods, Nuwood and Laminated sheets.

23. Safety Matches.

24. Telecommunication and sound transmitting equipments including Cellular & Cordless Telephone, Fax and Pagers.

25. Tea

26. All types of yarn, whether cotton, woollen or synthetic.

27. Metallic Utensils.

28. All types of crockery.

29. Photographic goods.

30. Plastic goods, PVC granules except when used as raw material for production of plastic goods.

31. Rubber and goods made of rubber.

32. All kinds of paper and paper products including exercise books.

33. All kinds of tiles.

34. Fireworks.

35. Non-edible oil.

36. Rice.

37. Cotton Seed.

38. All kinds of foot-wear.

ii. If any registered dealer receives any taxable goods, as may be notified by the State Government, consigned to him from outside the state or by way of branch transfer/depot transfer/stock transfer, is required to issue Form VAT – 47. For this clause, all goods have been specified other than the petroleum products and exempted goods mentioned in notification No. F.12(84)FD/Tax/2009-22. Therefore, for receiving the goods as branch transfer/depot transport/stock transfer, Form VAT – 47 is required on all the goods.

4. Reduction in Rate of Tax

i. On the following items, the rate of tax has been reduced to 4% w.e.f. 8-7-2009:

• Dry Flower;
• Electronic Weights & Measures excluding Weighing Scales;
• Diamond Bits;
• All kinds of Building Stone, Grit and Gitti;
• Aviation Turbine Fuel

ii. The rate of tax payable in respect of sale of used motor cars :

Sl. No.	Engine’s capacity	Lump sumamount payable
1	Having Engine’s capacity
	up to 1000 CC	Rs. 2,000/-
2	Where engine’s capacity
	exceeds 1000 CC	Rs. 5,000/-

5. Declaration Forms

i. Another important announcement is related to ‘C’/ ‘F’ Forms. Now the assessee may send the entire information related to ‘C’/ ‘F’ Form, on the departmental website and the department would send the ‘C’/ ‘F’ Forms to the dealer through registered post. Now the dealers are not forced to go to department for ‘C’/ ‘F’ Forms as well.

ii. The date for the submission of declaration forms related to the assessments completed on or before 31-3-2009, has been extended up to 31-3-2010.

6. Increase in penalty for late Filing of Returns

The penalty for late filing of the Return has been increased as per amendment in sec. 58 of the RVAT Act.

B. Land Tax

The Land Tax has been reduced as per notification No. F.12(84)FD/Tax/2009-35 w.e.f. 1-4-2009.

C. Stamp Duty Act

i. The stamp duty has been reduced from 8% to 5% and for women from 5% to 4%.

ii. The DLC Rates have also been increased by 25% in Jaipur and 10% in other cities

D. Luxury Tax

Minimum limit of room rent on which the Luxury Tax is not leviable has been increased from Rs. 1000/- to Rs. 3000/-.

E. New Levy

Water Conservation Cess @ 10 Paisa per unit has been levied on Energy Consumption for commercial purposes.