Nod to Goa Value Added Tax Bill

The governor has given his assent to the Goa Value Added Tax (second) Amendment Bill which was passed by the Goa assembly on July 31.

In the new Act, the composition scheme has been changed to include entry of starred category hotels whose turnover in the previous year had not exceeded Rs 50 lakh. To promote Goa as an entertainment destination, entertainment tax has been altered to further the interests.

The amendment has the definition of entertainment widened to include cinemas, sports, water sports, amusement, dramas, cultural performances, dance, parasailing, river cruises, cable TV, cable TV operators, cyber café, pool parlours, motor carts, slot machines, and casinos.

Surcharge on entertainment tax has been deleted consequently and tax payable on cinemas tickets, boat cruises also have been reduced.

In addition, Section 7, which deals with composition of tax, has now been amended. Under the new provision, dealers under the composition scheme are required to pay tax monthly and file returns quarterly.

Failure to file returns quarterly attracts a penalty of Rs 1,000 plus penal interest of 2 per cent per month on the tax due.

The penalty provision under Section 55 makes the punishment more stringent.