GULF COUNTRIES TO LEVY INCOME TAX & VAT
Gulf countries are one of the largest attractions for foreign investors and expatriate workers due to absence of Income Tax and many other tax reliefs. But this scenario would not last too long.
The six Gulf countries are trying hard to meet the deadline for the implementation of corporate and individual income tax by 2012. According to experts, ‘the prospect of drastic reductions in oil revenues and the resultant fiscal deficit has forced the six countries to examine whether implementation can be done earlier than 2012.
The Gulf Co-operation Council’s monetary and tax system is traditional. Levying of income tax & VAT is a first step towards monetary globalization.
Foreign banks are taxed at a rate of 20% on their taxable income in Abu Dhabi, Dubai, & Sharjah. Oil companies pay at a flat rate of 55% on their taxable income in Dubai & 50% in other emirates.
LAST DATE OF FILLING OF VAT AUDIT REPORT HAS BEEN EXTENDED
The dealers having gross purchases or sales more than Rs.40.00 Lakhs during the F.Y 2007-08 should get their books of Account audited by Chartered Accountant or Cost Accountant and will have to submit VAT Audit Report to Sales Tax Department by 02/03/2009 earlier it was 31/01/2009.
The dealers holding license under Foreign & Country Liquor Regulations should also get their accounts audited and should submit VAT Audit Report to Sales Tax Department by 02/03/2009 irrespective of their gross purchase & sales exceeds Rs.40.00Lakhs.
LAST DATE OF FILLING OF MONTHLY RETURNS
The registered dealers having MVAT liability for F.Y 2007-08 (01/04/07-31/03/08) more than Rs.10.00 Lakhs or Refund more than Rs.1.00 Crore should file monthly return. As per circular 17T (08) DT. 05/05/08, MVAT monthly returns should be filed electronically in Form 231(Form IIIE for CST) within 21st day of the next month. Last date of filing of the return for the month of Dec. 08 is 21/01/2009.
Those who have adopted the Composition scheme should file the return in Form 232, Works contract & leasing dealers in Form 233 & Package scheme dealers in Form 234. As per Sec.41 (4) oil companies should file monthly returns in Form 235 within 15th day of succeeding month.
AMENDMENTS IN MVAT ACT
Last date for submission of PAN to Sales Tax Department has been extended till 31st Jan 09 as per Rule 16. Sub rule (3) of Rule 16 has been included in the MVAT Act. As per this sub rule those trader whose have been registered on 01/08/2007 and do not have intimated the PAN (of Income Tax Act) to the sales tax department should compulsory intimate it to the department on or before 31st Jan 2009. Whereas those traders who have not PAN card should apply for it and intimate it to the department on or before 31st Jan 2009.( Circular no. 39T/2008)