Karnataka :

Seeking to provide relief to lower middle-income groups, the State Budget for 2015-16 exempted persons drawing salary of less than Rs. 15,000 a month from payment of professional tax as against the present limit of Rs. 10,000 a month.

The age of senior citizens has been reduced from the present 65 years to 60 years to extend the benefit of exemption from payment of professional tax.

Tax exemption continues on paddy, rice, wheat, pulses and products of rice and wheat.

The budget has reduced VAT on mobile phone charger from 14.5 per cent to 5.5 per cent whether sold along with mobile phones in sealed packet or otherwise.

Chief Minister Siddaramaiah enhanced the prescribed period for disposal of appeal by the Karnataka Administrative Tribunal from the existing 180 days to 365 days from the date of stay order.

It proposed to amend the Karnataka Value Added Tax (KVAT) Act 2003, to widen the tax base through value addition to each point of sale.

The amendment to the KVAT Act is to provide deduction of tax at source, at applicable rate, out of the amounts payable to a dealer from whom goods are purchased by government department or local bodies.

It also made provision for dealers to file an appeal electronically against any order or proceedings affecting him under the provisions of the KVAT Act.

source: http://www.thehindu.com / The Hindu / Home> News> National> Karnataka / by Nagesh Prabhu / Bengaluru – March 14th, 2015