Karnataka Budget 2013-14 highlights

Posted on Feb 9, 2013 in Karnataka VAT

Tax proposals

Commercial Taxes

  • Expected collection of Commercial Taxes for 2012-13 likely to exceed 32000 Crores.
  • Projected Revenue collection for the year 2013-14 is 37000 crores
  • VAT rates to be moved back  from 5.5% to 5% and 14.5% to 14% from August 2013


  • Tax exemption on paddy, rice, wheat, pulses and products of rice and wheat continued for one more year from April, 2013.
  • Tax on arecanut dehusking machine reduced from 14.5% to 5.5%.
  • Tax on cocoa husk reduced from 14.5% to 5.5%.
  • Tax on Refractory Monolithic Powder reduced from 14.5% to 5.5%.
  • Taxation scheme on soya bean edible oil manufacturing unit suitably modified.
  • Tax on purchase of supplementary nutrition food made under the Integrated Child Development Scheme for supply to Children, pregnant women / nursing mothers and adolescents by Anganawadi Centres run by Women and Child Welfare Department, reduced from 14.5% to 5.5%.
  • Tax on domestic containers reduced from 14.5% to 5.5%.
  • Footwear costing up to two hundred rupees per pair exempted from tax.
  • Tax on doors and window frames and door and window shutters made from waste plastic reduced from 14.5% to 5.5%.
  • Air compressors and their parts including engines included in the list of capital goods liable for 5.5% tax.
  • Payment of 50% of disputed amount currently required to be made by the dealers for filing appeals against orders demanding tax in excess of the amounts declared by them and for obtaining stay for its recovery reduced to payment of 30%.
  • The current time of ten days given for payment of additional tax demanded on assessment and reassessments increased to thirty days.

Entry tax


  • Threshold of two lakh rupees for registration under Entry Tax Act increased to five lakh rupees.

Professions Tax

Rationalization measure

  • Provision for filing of appeal even against best judgment assessment order.



  • Excise Department likely to exceed revised target of Rs. 11,200 fixed for 2012-13.
  • The revenue collection target of Rs.12400 crores fixed for year 2013-14.
  • 17 slabs of declared prices relating to Indian Made Foreign Liquor increased by Rs. 40 each.
  • License fee for transfer of retail liquor license (CL-2) and bar and restaurant license (CL-9) from one person to another doubled. It is proposed to double the license fee collected for such transfer.
  • Electronic payment facility for payment of excise duty and other amounts by distilleries and breweries.
  • A system of online issue of No Objection Certificate allotment of rectified spirit to distilleries.


Stamps and Registration

  • Revenue collection target of Rs.5200 Crore fixed for the department likely to be exceeded.
  • For the year 2013-14, a revenue collection target of Rs. 6100 Crore fixed.
  • A cap of Rs.1.5 lakhs fixed on registration fee of 1% payable on Joint Development Agreement and related Power of Attorney.

Motor Vehicle Taxes

  • Revenue collection target of Rs. 3350 Crores for 2012-13 likely to be exceeded.
  • Collection target fixed at Rs. 4008 Crores for year 2013-14.
  • Lifetime tax to be collected on construction equipment vehicles in one instalment instead of two instalments.
  • Electronic payment facility for payment of tax and fees in respect of motor vehicles


  1. Don’t See any drastic Change same as others party do

  2. VAT rates to be moved back from 5.5% to 5% and 14.5% to 14% from August 2013 changed

  3. Don’t See any drastic Change same as others party do

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