March, 2016 GUJARAT BUDGET, 2016-17
GUJARAT BUDGET, 2016-17 VALUE ADDED TAX Item that becomes TAXFREE Bamboo and bamboo articles (Except furniture) Pedal Rickshaw and cycle rickshaw Mosquito Net Sanitary Napkins and adult diapers Frozen semen Ceramic products: from current rate of tax 15% including additional tax to 5% including additional tax Vehicles purchased by institutions (Institutional purchases) increase the rate of tax from current rate of tax 15% to 20% on the vehicles (except school buses, college buses, passenger buses and goods trucks) purchased by Companies, Firms, Institutes, Associations, Trusts, Government departments, Boards Corporations, Local Self Governments, etc. The proposed increase will not be applicable to purchases made by individuals for personal use. Luxury car/ SUV and luxury two wheeler Normally, luxury cars/suvs and luxury two wheelers are used by economically sound people. Therefore budget propose to increase the rate of tax from current rate of tax 15% to 20% on luxury cars/suvs with price more than ` 15 lakhs and luxury two wheelers with price more than ` 2.5 lakhs Pan Masala now tax at 25% from the present rate of 15% Industrial Salt to be tax at the rate of 5% on usage in manufacture of goods P a g e 1
G u j a r a t B u d g e t, 2 0 16-17 E Commerce transactions For creating level playing field for local suppliers that are affected adversely from sale of goods through supplies in the State under e commerce transactions. The State government proposes cover the goods coming in the State through e commerce under the Entry Tax. As a result of this proposal, the tax revenue of the State is estimated to increase approximately to the extent of ` 30 crores annually. Provisional Refund 100% provisional refund within 30 days from the date of submission of all documents for Small Dealers [dealers to whom refund upto ` 1.00 lakh is to be paid] ELECTRICITY DUTY Hotel/ Restaurants Presently, Electricity Duty at the rate of 25% is applicable to hotel/restaurants. It is proposed that such units which are getting electricity at high voltage will attract the rate of only 15% of Electricity Duty, and the units other than the above units will attract Electricity Duty at the rate of only 10%. Because of the above change, the hotel/restaurants of the State will get relief to the extent of approximately ` 40 crore. Private Hospitals With the purpose of getting quality health facilities easily in the state therefore, Budget proposes to reduce the current rate of Electricity Duty from 25% to 15% for the private hospitals having ten (10) or more beds. Due to the proposed change, the private hospitals of the State would get relief of approximately ` 40 crore. Stamp Duty Budget proposes to provide exemption from payment of Stamp Duty to Establish their registered share broking office in GIFT City will get exemption from payment of Stamp Duty w w w. n p a h i l w a n i. c o m P a g e 2
INDUSTRIES Establish an S.M.E. Help Desk under Industries Commissioner Offices It is proposed to establish an S.M.E. Help Desk under Industries Commissioner Offices with an intention to guide the investors who want to start-up their Industries in the state. Modernization of District Industries Centre It is proposed to modernize Industries Commissioner Office and 7 District Industries offices under IC office. Ease of Doing Business (EODB Cell) To ensure that the state offers maximum ease to the entrepreneurs in establishing industries, the Government is acting on establishing Ease of Doing Business. For fulfilling this aim, the various processes are to be integrated on single IFP Portal. Various Government departments, which grant permissions/clearances/approvals in establishing business, are coordinated to simplify their processes and integrate with IFP. Creation of icreat Corpus Fund The state government is set to invest about ` 150 crore for the centre's own campus. Loan to GIIC for creation of Goldan Gujarat Growth Fund (3G Fund) GVFL will start ` 50 Crore Golden Gujarat Growth fund and this fund shall be used for Infrastructure development, Energy Generation and Distribution, Delhi- Bombay Industrial Corridor, Projects for Special investment Region and clean and green Technology projects. Assistance to GIDC for Apparel Garment Park Gujarat Mineral Development Corporation has made provision for providing financial assistance to facility of readymade infrastructure for units which are under Textile Park at four places with plug and play environment. Scheme for promotion of Cotton Spinning Industries It is proposed to encourage cotton spinning units and cotton spinning by providing interest subsidy, assistance for creation of infrastructure facility in the cotton spinning parks & VAT concession to spinning, ginning, weaving & Technical Textile units & power tariff to spinning & ginning units. Loan to Mega project to Implement State Support Agreement It is proposed to provide financial assistance based on the merit to Mega Project to implement State Support Agreement P a g e 3
G u j a r a t B u d g e t, 2 0 16-17 Village and Small Industries Handicraft Industries Financial Assistance to Gujarat State Handicraft Development Corporation For the benefit to artisans associated with Handicraft & Handloom Sector. More funds are allocated for development of Handicraft sector in the state & effective implementation of schemes Design Studio for Khadi and Handloom products Implementation of Design Studio for Khadi & Handloom will provide to make qualitative designing work, encourage the employment of weavers of Khadi & Handloom, colour and research in Khadi & Handloom and produce various kinds of clothes and home furnishing then with the help of experts of the same field. Market Development Assistance for Khadi Institutions The Budget proposed for one time settlement under Market Development Assistance for Khadi institutions Implementation of Clay Idol Project For the purpose of encouraging the production of clay idol project in the state. It is proposed to build capacity of clay idol makers and to provide business start-up support Research & development for promotion eco friendly products It is proposed for Research & development for promotion eco friendly products. Additional Establishment for Indext C To provide marketing platform to artisan by Indext-C w w w. n p a h i l w a n i. c o m P a g e 4
TOURISM Integrated Tourist Destination Management Implementation of the scheme for Integrated Tourist Destination Management Extension, Publicity Information, Survey at Tourists Sports The Vibrant Gujarat Global Investors Summit 2017 will be held in the month of January 2017. In order to give prominence to Tourism Sector it is proposed to put up Exhibition in the large scale and also organized various conference and seminars. Dholera International Airport It is decided to have for special purpose vehicle (SPV) for development of proposed Greenfield International Airport near proposed Dholera Special Investment Region Incentives for Film Shooting It is proposed to organize National /International Film Festival in Gujarat with the help of National Film Development Corporation (NFDC). Amreli Aero Sport Hub It is proposed to support and develop Aero sport activities in the Gujarat and plans to establish Aero Sports Hub in Gujarat. Centre for Excellence It is proposed for Establishing Centre of Excellence and Skill Development Centre for Aerospace Stream based on PPP Mode. Exhibition & Seminar It is proposed for National and International exhibitions, which expenditure includes membership /registration fees, stall rent, stall decoration, transportation, travel, courier charges and all other incidental and ancillary expenses. Integrated Destination Development It is proposed to new Initiatives of Water Sports Activities / Cruise Tourism/ Development of Nature Trails along River Fronts, Way Side Amenities on Major Highways and Bio Toilets at Important Pilgrim Tourist Places, Sound & Light Shows/Lighting & Illumination of Monuments/ Heritage Sites, Promotion of Unique Tourist Attractions (including Tent City), Promotion of (i) Heritage Tourism (ii) Medical & Wellness Tourism, Landmark Tourism Projects -Like Giant Wheel, Unlocking Potential of Lesser Known Tourist Destinations. P a g e 5
G u j a r a t B u d g e t, 2 0 16-17 URBAN DEVELOPMENT AND URBAN HOUSING BIG PUSH FOR HOUSING FOR ALL Mega Metro Phase II and DPR For Surat Metro The Metro Rail is the most effective way for transportation in urban areas. Ahmedabad Metro Rail Project Phase I is in progress. Now MEGA Company is planning to expand the route from Gandhinagar to GIFT City and connected to Airport in the Phase _II and also planning to Metro Rail in Surat City. To prepare Draft Project Report (DPR) through Delhi Metro Rail Corporation Limited (DMRC) for Ahmedabad Metro Rail Project Phase II and Surat City Grant in aid to Technological Innovative solution for Urban Development In State urban areas through innovative technical solutions for Urban development better development process is achieved with use of new small & big innovative technologies such as solar motor pump, illegally parked vehicles toeing tool/vehicle etc. Mukhya Mantri Shaheri Sadak Yojana Mukhyamantri Shaheri Sadak Yojana is envisaged for Construction of Urban roads and resurfacing of roads damaged due to sewage, drainage and other works. Loans to Diamond Research and Mercantile City Company Limited (DreamCCL) Government of Gujarat is to establish a Diamond Research and Mercantile (DREAM) City Company at Surat. The DREAM City at Surat would also be developed as Smart City. This would also help in developing skills in the diamond sector and the city may be developed as an International Diamond Manufacturing and Trading Hub in an integrated manner. w w w. n p a h i l w a n i. c o m P a g e 6
SCIENCE AND TECHNOLOGY State Data Centre (New) It is proposed to create new Tier IV Green Field State Data Center in 15,000/- Sq. Mtr. Space for Data Storage and Applications. GSWAN connectivity in Rural Areas State Government wishes to provide the GSWAN connectivity to rural areas to provide the e-services of the Government in the remote locations. Gujarat Fiber Grid Network- Bharat Net To overcome the problem of non-availability of Broadband/Internet connectivity at the far end of the society-rural population under Digital India-Digital Gujarat. Government of Gujarat is taking a lead in setting up of Gujarat Fiber Grid Network under the umbrella of Bharat Net Project of Digital India. Development of Bio-Technology This Support scheme is envisaged for Universities and educational institutions for validating Ayurveda and herbal medicine for improving human health through biotech interventions. The scheme is envisioned to improve human health through development of database of gens (genomics), RNA (transcriptomics), metabolites (metabolomics) and protein (proteomics) of important diseases and relevant herbal medicine. The scheme envisage to strengthen Ayurveda and herbal medicine research infrastructure in universities and educational institutions by providing them project based assistance. Biotechnology Policy Incentive Incentive scheme under biotechnology policy will focus on infrastructure development, Human Resource Development, Research, awareness, Incubation and Startups. P a g e 7
G u j a r a t B u d g e t, 2 0 16-17 OTHER INITIATIVES INFO AND BROADCASTING Financial Assistance to the Producers of tax free Gujarati Films To improve the quality of Gujarati films and to create environment that can encourage the people to watch Gujarti Films Quatliy Embedded Policy for Gujarati Films, 2016 has been formulated. ENERGY AND POWER Gujarat Urja Vikas Nigam Limited has decided to establish a Research and Development Cell (R&D Cell) to achieve the Goal of State Government, for supplying Continuous & Quality Power supply to consumer of all categories in the state. Assistance to R&D Institution of the state to establish World class Testing Laboratory for testing and evaluating electrical equipment Convection cum exhibition centre It is proposed for convection cum exhibition center, Sabarmati River Front, Ahmedabad. Setting up of Goods and Service Network (GSTN) Portal to create a new Project of Integrated Land Management System. To prepare E-auction Mineral platform and appointment of Transaction Advisor IT based E-Governance w w w. n p a h i l w a n i. c o m P a g e 8
Email: info@npahilwani.com www.npahilwani.com www.facebook.com/npahilwani www.twitter.com/npahilwani_ www.linkedin.com/company/n-pahilwani-&-associates The information contained herein is of general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that will continue to accurate in future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. P a g e 9