Gujarat Budget 2013-14 proposals enacted

April 11, 2013
1 min read

[By Shaleen Shah (Partner), VNCA]

Gujarat Value Added Tax (Amendment) Act, 2013 enacted through Gujarat Act No.9 of 2013

VAT Amendments proposed in Gujarat Budget 2013-14 presented on 24-Feb-2013, was enacted & received the assent of the Governor on 30-Mar-2013. The tax amendments made in the budget and notified vide Notification No. (GHN-4) will be effective from 1-Apr-2013. The important changes in VAT & Profession Tax laws are summarised as follows:

1. New sub-section (7A) is introduced in section 11 to provide that if a vendor has not paid tax collected on sales into the Government Treasury, the buyer’s `Input Tax Credit’ will be disallowed to that extent.

2. Through a newly introduced sub-section (8A) in section 34, power of instant assessment are granted to the Commissioner if there is reason to believe any tax evasion, excess claim of input tax credit or incorrect disclosure of tax liability.

3. The following changes in VAT & Profession Tax Rates have been passed as per Budget Proposals intimated earlier:

Sr. No.






Lump Sum Tax (VAT) for Small Dealers

Increase in turnover limit for composition scheme u/s 14.

Turnover limit Rs 50 Lacs

Turnover limit Rs 75 Lacs


Micro Irrigation System Equipments

Exemption from tax [Entry 94 inserted]




Educational Items for Students’ Studies

Exemption from tax [Entry 95 inserted]




Newar Made of Plastic

Exemption from tax [Entry 40 substituted]




Agarbatti Dust

Exemption from tax [Entry 96 inserted]




Carbon Credit

Reduction in rate [Entry 41 amended]





Increase in rate [Entry 19A inserted & Entry 76A amended]




Second Hand Two Wheelers & Commercial Vehicles

Concessional tax on sale of second hand (used) motor car by a registered dealer is extended (subject to conditions) to sale of second hand (used):

– two wheelers [Entry 97(i) inserted]

– medium & heavy duty commercial vehicles [Entry 97(ii) inserted]

Consequently, Purchase of second hand (used) two wheelers and medium & heavy duty commercial vehicles wholly exempted from Purchase Tax [Entry 98(i) & 98(ii) inserted]

Motor Cars

1% / Max Rs.2000/-

Motor Cars

1% / Max Rs.2000/-

Two Wheelers

1% / Max Rs.500/-

Heavy Comm. Vehicles

1% / Max Rs.5000/-


Professional Tax

(Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976)

The basic exemption slab for payment of Profession Tax by salary & wage earners is increased. The rates above Rs.6000 are unchanged. [Notification No. (GHN-5)]

Fully Exempt upto salary of Rs.3000 p.m.

Fully Exempt upto salary of Rs.6000 p.m.

Previous Story

Consolidated FDI Policy Circular effective April 5, 2013 – Policy or a mere consolidation???

Next Story

Income Tax department to ‘name and shame’ habitual tax evaders

Latest from Blog

Income Tax deduction for procurements from MSMEs only upon actual payment

By Shaleen Shah | LinkedIn, assisted by Divyansh Jain Introduction This Note is relevant to computation of income under the head ‘Income from business and profession’. Section 43B of the Income Tax Act provides a list of expenses allowed as deduction, on cash basis irrespective of the year of accounting.

Foreign companies may be required to file Tax Returns in India

by Nexdigm Private Limited as published on Impact of increase in withholding tax on rates for Fees for Technical Services and Royalty As per Indian Tax laws1, payments made to Non-Residents/Foreign Companies for Fees for Technical Services (FTS) and Royalties were liable to tax at the effective tax rate of

How Cryptocurrencies Are Taxed In India

[Source:; Authors: Justin M Bharucha, Aashika Jain] Cryptocurrencies and non-fungible tokens (NFTs) are presently unregulated in India. While the Reserve Bank of India (RBI) had sought to ban cryptocurrencies in 2018, the Supreme Court quashed the attempted ban leaving cryptocurrencies in regulatory limbo – neither illegal nor, strictly speaking,

Higher rate of TDS in certain situations from 1st July 2021

[By Shaleen Shah (Partner), VNCA] Finance Act 2021, has introduced a new section 206AB effective from 1-Jul-2021 wherein a payer/buyer is responsible to deduct TDS at higher rate (i.e. twice the rate as specified under the relevant provision of the Income Tax Act or twice the rate/ rates in force;

Don't Miss

New Section 12AB: Re-Registration of Trusts / Institutions registered u/s 10(23C) / 12A / 12AA / 80G of Income Tax Act

[By Shaleen Shah (Partner), VNCA] All the existing charitable and

QRMP scheme launched for GST payers with turnover up to Rs.5 crore

The government has launched the Quarterly Return filing & Monthly