Gist of amendments proposed in the Karnataka State budget to beimplemented from 1st Apr 2011

Gist of amendments proposed in the Karnataka State budget to beimplemented from 1st Apr 2011.1. Karnataka VAT Notification No. FD35 CSL 11Dated: 29th March 2011Karnataka Value Added Tax Act 2003 - Exemption from taxIn exercise of the powers conferred by sub-section ( 1) of section 5of the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004),the Government of Karnataka hereby exempts with effect from the firstday of April, 2011 and during the financial year ending thirty firstday of March, 2012, the tax payable by a dealer under the said Act onthe sale of the following goods, namely,- (1) Paddy and rice. (2) Wheat. (3) Pulses. (4) Flour and suji of rice and wheat. (5) Maida of wheat.By Order and in the name of the Governor of Karnataka,D.R. ShashidharUnder Secretary to Government,Finance Department (C.T.-l).2. Karnataka VAT Notification No. FD35 CSL 11 Dated: 29th March 2011 Karnataka Value Added Tax Act 2003 - Exemption from taxIn exercise of the powers conferred by sub-section (1) of section 5 ofthe Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004),the Government of Karnataka hereby exempts with effect from the firstday of April, 2011, the tax payable by a dealer under the said Act onthe sale of the following goods, namely.- (1) De-oiled rice bran. (2) Coconut, but excluding copra and desiccated coconut powder.By Order and in the name of the Governor of Karnataka,D.R. ShashidharUnder Secretary to Government,Finance Department (C.T.-l).3. Karnataka VAT Notification No. FD35 CSL 11 Dated 29 March 2011Karnataka Value Added Tax Act 2003: Exemption from taxIn exercise of the powers conferred by sub-section (1) of section 5 ofthe Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004),the Government of Karnataka hereby exempts with effect from the firstday of April, 2011, the tax payable by a dealer under the said Act onthe following, namely.- (1)Transfer of right to use 'feature films'. (2)Sale or transfer of right to use copy rights relating to'feature films'.By Order and in the name of the Governor of Karnataka,D.R. ShashidharUnder Secretary to Government,Finance Department (C.T.-l).4. Karnataka VAT Notification No. FD35 CSL 11 Dated 29 March 2011Karnataka Value Added Tax Act 2003 : Reduction in TaxIn exercise of the powers conferred by sub-section (3) of section 4 ofthe Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004),the Government of Karnataka hereby reduces with effect from the firstday of April, 2011, the tax payable by a dealer under the said Act totwo per cent on the following, namely.- (1) sale of, (i) jewellery and articles of gold, silver and other noblemetals whether or not studded with precious or semi-precious stones;and (ii) precious and semi-precious stones. (2) transfer of property in goods involved in the execution ofworks contract of manufacturing or processing and supplying ofjewellery and articles of gold, silver and other noble metals whetheror not studded with precious or semi-precious stones.By Order and in the name of the Governor of Karnataka,D.R. ShashidharUnder Secretary to Government,Finance Department (C.T.-l).5. Karnataka VAT Notification No. FD35 CSL 11 Dated 29 March 2011 [5]Karnataka Value Added Tax Act 2003 - Reduction in TaxIn exercise of the powers conferred by sub-section (3) of section 4 ofthe Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004),the Government of Karnataka hereby reduces with effect from the Firstday of April, 2011, the tax payable by a dealer under the said Act tofive per cent on the sale of following goods, namely,- (1) School bags costing upto five hundred rupees each. (2) Caps. (3) Barbed wire.By Order and in the name of the Governor of Karnataka,D.R. ShashidharUnder Secretary to Government,Finance Department (C.T.-l).