DVAT:
Delhi Value Added Tax Department has notified a new composition scheme for Restaurants and Halwais (sweets shops) operating in NCT of Delhi. The rate of composition tax has been increased to 5% of entire turnover from 1% of entire turnover. The department has imposed certain conditions for availing the composition scheme which includes that the dealer shall not be eligible for making purchases from or procuring goods from or making sales to or making supplies to any place outside Delhi; he shall not be eligible to claim tax credit under section 9 of the Act; he shall not be entitled to issue `Tax Invoices’, etc. A dealer, who is paying tax under section 3 of the Act, can opt for payment of tax under this scheme by filing an application in Form RH 01 appended to this notification within a period of thirty days from the first day of the year with effect from which composition is opted. This Notification is effective from 1st April, 2016.
Small Savings Schemes:
Interest rates on popular small savings such as Kisan Vikas Patra, National Savings Certificate and post office recurring deposit schemes are set to come down from April 1, 2016 as the government reframes the interest rate framework for these schemes to align it with market rates. The interest rates of these schemes will now be reset every quarter as part of this new framework. This is expected to help the economy move to a lower overall interest rate regime eventually and thereby help all, particularly low-income and salaried classes. Further, The government has decided to allow for premature closure of PPF accounts in cases such as that of serious ailment, higher education of children, This shall be permitted with a penalty of 1% reduction in interest payable on the whole deposit and only for the accounts having completed five years from the date of opening.
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