Development Tax in UP

Dear Anand

The Uttar Pradesh government, which recommended withdrawl of 1% trade tax on the turnover of over Rs 50 lakh, imposed a new tax called “state development tax” of 1% on business houses doing a business of more than Rs 50 lakh a year, which was under effect May 1st 2005. 

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The development tax would be for FIVE YEARS.

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Traders dealing with business like Newspapers, Agricultural Equipments, khadi Gram Udyog Products and Handicrafts would not be covered under the new tax. Also, raw materials for the use of registered industrial units and packing materials would not be taxed.

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A fiscal year (or financial year, or sometimes budget year) is a period used for calculating annual ("yearly") financial statements in businesses and other organizations. In many jurisdictions, regulatory laws regarding accounting and taxation require such reports once per twelve months, but do not require that the period reported on constitutes a calendar year (i.e., January through December).

In INDIA, the government's Financial Year runs from April 1 to March 31.

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The " State Development Tax " at the rate of One Percent (1%) of the Total Turnover shall be imposed on wholesale traders with annual turnover of Rs 50 lakh and above.