EXTRACT OF THE RAJASTHAN FINANCE BILL, 2021
A
Bill
further to amend the Rajasthan Stamp Act, 1998, the Rajasthan Fiscal Responsibility and Budget Management Act, 2005, the Rajasthan Motor Vehicle Taxation Act, 1951, the Rajasthan Contingency Fund Act, 1956 and the Rajasthan Value Added Tax Act, 2003, in order to give effect to the financial proposals of the State Government for the financial year 2021-22.
Be it enacted by the Rajasthan State Legislature in the Seventy-second Year of the Republic of India, as follows:-
CHAPTER I
PRELIMINARY
1. Short title.-
This Act may be called the Rajasthan Finance Act, 2021.
2. Declaration under section 3, Rajasthan Act No. 23 of 1958.- In pursuance of section 3 of the Rajasthan Provisional Collection of Taxes Act, 1958 (Act No. 23 of 1958) it is hereby declared that it is expedient in the public interest that provisions of clauses 3, 5, 6, 7, 8, 9 and 10 of this Bill shall have immediate effect under the said Act.
CHAPTER VI
AMENDMENT IN THE RAJASTHAN VALUE ADDED TAX ACT, 2003
9. Amendment of section 33, Rajasthan Act No. 4 of 2003.-
In section 33 of the Rajasthan Value Added Tax Act, 2003 (Act No. 4 of 2003), hereinafter in this Chapter referred to as the principal Act, after the existing sub-section (4) and before the existing sub-section (5), the following new sub-section shall be inserted, namely:-
"(4A) Notwithstanding anything contained in this section, the rectification application pertaining to any period up to 30th June, 2017 may be filed by 30th June, 2021 and such applications shall be disposed of up to 30th September, 2021 or within six months from the date of filing thereof, whichever is later.".
10. Amendment of section 34, Rajasthan Act No. 4 of 2003.-
In section 34 of the principal Act, after the existing sub-section (3), the following new sub-section shall be added, namely:-
"(3A) Notwithstanding anything contained in this section, the application under this section pertaining to any period up to 30th June, 2017 may be submitted manually, directly to the concerned assessing authority up to 30th September, 2021 and the assessing authority shall proceed to make a fresh assessment within ninety days of the receipt of such application.".
STATEMENT OF OBJECTS AND REASONS
1. THE RAJASTHAN STAMP ACT, 1998
There are provisions of stamp duty on the ancestral property under article 48 of the Schedule to the Rajasthan Stamp Act, 1998 but the term 'ancestral property' is not defined in the said Act. Hence the definition of the expression 'ancestral property' is proposed to be included in the Act.
Definition of concession agreement is proposed to be amended so as to bring in its ambit the concession agreements executed by the Central Government and the State Governments, local authorities, statutory bodies or any other instrumentalities of the said Governments and to clarify its scope.
According to the provisions of the Rajasthan Stamp Act, 1998 stamp duty and surcharge may also be paid through e-GRAS along with other methods of payment of stamp duty but the provisions of refund of extra stamp duty or surcharge paid through e-GRAS have not been made expressly in the said Act. Hence to make express provisions for refund of stamp duty or surcharge paid through e-GRAS a new section 64-A is proposed to be added in the said Act.
According to present provisions of the proviso to clause (c) of Article 5 of the Schedule to the Rajasthan Stamp Act, 1998, stamp duty paid on an agreement to sale is adjusted at the time of registration of the conveyance deed executed in pursuance of such agreement within three years from the date of the execution of the agreement to sale. Whereas under the Real Estate (Regulation and Development) Act, 2016 (Act No. 16 of 2016), the Chief Minster's Jan Awas Yojana or the Rajasthan Township Policy the competent authority may allow or extend the period of completion of the real estate project for more than three years. Whereas competent authority allows or extends the period of completion of the real estate project for more than three years, the allottee or beneficiary under such project is deprived of the benefit of adjustment of the stamp duty paid by him on the agreement to sale. Therefore the period of adjustment of stamp duty paid on an agreement to sale at the time of registration of the conveyance deed is proposed to be increased from three years to five years.
At present stamp duty is prescribed on the instruments of conversion of firm, private limited company or unlisted public limited company into Limited Liability Partnership under article 35-B of the Schedule to the Rajasthan Stamp Act, 1998 but there is no provision regarding stamp duty on the instrument of conversion of Limited Liability Partnership into a private limited company. Therefore to make provisions of stamp duty on the instrument of conversion of Limited Liability Partnership into a private limited company provisions of Article 35-B are proposed to be amended.
At present concession in stamp duty is available to certain specified co-owners, co-sharers and coparceners where they renounce their interest, share or claim in ancestral property. Now this benefit is proposed to be extended to all the co-owners, co-sharers and coparceners in ancestral property. Accordingly, article 48(a) of the Schedule to the said Act is proposed to be amended suitably.
2. THE RAJASTHAN FISCAL RESPONSIBILITY AND BUDGET MANAGEMENT ACT, 2005
The Rajasthan Fiscal Responsibility and Budget Management Act, 2005 was enacted for the purpose of enabling the State Government to manage State finances in a fiscally responsible manner by undertaking fiscal consolidation with time bound targets. After 2019-20, limit of the outstanding debt is not prescribed in the Act. Therefore, clause (c) of section 6 of the Act is proposed to be amended.
Due to the unprecedented COVID-19 pandemic and related lockdown there has been serious negative impact on the financial resources and economic growth of the State in the current financial year. The state requires additional resources to combat the pandemic and maintain the standards of service delivery to the public, which may force the government to go for additional borrowings to shore up resources.
The Central Government recently allowed the States for additional borrowings of up to 2 per cent of the Gross State Domestic Product (GSDP) over and above the normal limit of 3 per cent (total up to 5 per cent of the GSDP) in the financial year 2020-21 subject to carry out the necessary amendments to the respective Fiscal Responsibility Budget Management Acts.
Therefore, a new clause (e) in the first proviso of section 6 of the Rajasthan Fiscal Responsibility and Budget Management Act, 2005 is proposed to be added.
3. THE RAJASTHAN MOTOR VEHICLES TAXATION ACT, 1951
Sub-section (2) of section 4 of the Rajasthan Motor Vehicles Taxation Act, 1951 provides for imposition of motor vehicle tax on all motor vehicles used or kept for use in the State, except for the period during which the owner surrenders the certificate of registration. First proviso to the said sub-section mentions minimum period for such surrender or non-use i.e. one month which is a calendar month. The term of one month compels the owners of vehicles other than stage carriages to keep their registration certificate surrendered for more period owing to complete the periodicity of one calendar month. To remove this compulsion it was considered that for the term of one month the term of thirty days be substituted. The existing proviso does not provide for maximum period of surrender. Hence, appropriate amendment is required to provide for maximum period of ninety days of surrender of registration certificate for all the categories of vehicles except in case of theft of vehicle.
Accordingly, first proviso to sub-section (2) of section 4 of the Act is proposed to be amended.
4. THE RAJASTHAN CONTINGENCY FUND ACT, 1956
The Rajasthan Contingency Fund Act, 1956 makes a provision of a sum of five hundred crores of rupees to be placed at the disposal of the Governor for meeting unforeseen expenditure not provided for in the budget. Size of Government budget has increased almost more than double since last revision in 2013. Likewise demands of unforeseen items is also likely to go up. It is, therefore, proposed that the imprest in the Rajasthan Contingency Fund be raised from five hundred crores of rupees to one thousand crores of rupees.
5.. THE RAJASTHAN VALUE ADDED TAX ACT, 2003
The Rajasthan Goods and Services Tax Act, 2017 (Act No. 9 of 2017) which repealed the Rajasthan Value Added Tax Act, 2003, came into force from 01.07.2017. However, a large number of demands and disputes pertaining to the Rajasthan Value Added Tax Act, 2003 are outstanding on account of ex-parte assessments and for want of rectification.
Section 33 of the Rajasthan Value Added Tax Act, 2003 provides for rectification of any mistake apparent from the record. Sub-section (2) of the said section provides that no application for rectification shall be filed after the expiry of a period of three years from the date of the order sought to be rectified and sub-section (4) of the said section provides that no rectification under the said section shall be made after the expiry of four years from the date of the order sought to be rectified. It is therefore, proposed to insert a new sub-section (4A) after the existing sub-section (4) and before the existing sub-section (5) of section 33 of the Rajasthan Value Added Tax Act, 2003 so as to extend the dates for filing of application for rectification of mistakes apparent from the record pertaining to the period up to 30.06.2017, along with the disposal thereof.
Section 34 of the Rajasthan Value Added Tax Act, 2003 provides for reopening of ex-parte assessment, wherein, the dealers are required to make the application regarding the same before the concerned Deputy Commissioner (Administration) within thirty days of the service of the notice of demand in consequence of the assessment. The Deputy Commissioner (Administration), on being satisfied with respect to the judiciousness of the same may direct the Assessing Authority to cancel the ex-parte assessment and make a fresh assessment. Therefore, in order to simplify the procedure, it is proposed to add a new sub-section (3A) after the existing sub-section (3) of the above section so as to extend the dates for filing of application for re-opening of ex-parte assessments pertaining to the period up to 30.06.2017, along with its disposal and applying directly before the concerned assessing authority instead of the concerned Deputy Commissioner (Administration).
The Bill seeks to achieve the aforesaid objectives.
Hence the Bill.
Ashok Ghelot
Minister Incharge.
FINANCIAL MEMORANDUM
Attention is invited to clause 8 of the Bill whereby an additional amount of Five Hundred crores of rupees is provided to be paid in the Contingency Fund of the State of Rajasthan from and out of the Consolidated Fund of the State.
The expenditure will be of a non-recurring nature.