Finance BILL 2016 - Kerala Commercial Taxes

Thirteenth Kerala Legislative As€mbly
Btll No.396
{
g
TIIE KERALA
FTNANCE
BILL'
@
Kerala Legislature Secretariat
2016
PRESS'
KERALA NIYAMASABHA PRINTING
2016
Thirteenth Kerala Legislative Assembly
Bill No. 396
TIM KERALA FINANCE BILL'
25712016.
2016
Assembly
Thirteenth Kerala Legislative
'
Bill No' 396
BILL' 2016
THE KERAT-A FINAI'ICE
A
BILL
Kerala for
of the Government of
the
financial-proposals
ffict to certain2016-2017'
'" ""'rtlnon"ial
Year
effect to certain financial
is exped^ient-to give
it
2016-2017;
Preamble'-WHEREAS'
ro' ttt" pin-cial Year
ifK"'uru
cou"'i"l"t
of lndia as
proposals ottr'"
to sive
Br it
follows:--
1.
2'
re57
(rt
inserted'
enacted
Year of the Republic
in the Sixty-seventh
Finance Act' 2016'
be called the Kerala
may
Act
Short titte'1his
on Taxes Act' '
Kerala Surcharge
Amendment of A.ct
1:
of
"llittl;- J::J"
1957'-lnthe
(rA), the ro'owing
sub-section
sha'
namely:-
be
Added
value
section 6 of the Kerala
-^^.-^Ll;
p"v{1"^:'"31::'tt:lt";*"
tax
"nrler
of water'
rhe
tr'"
i"
to the
"(lAA)
shall' with respect
'ur"
2004)'
of
(30
Tax Act' 2003
*u"'
;:;;;;;' ryl ry::"n1;*m::':':'lg"F[1i
and
h'uman
or not' intended for
* ;l *tr
'"1"::i:?:uJ
containers
of
ll-1U*Ti[Y
[#i,:ii
tlt" t-1ull""*ir"i"Hff tr Tax Act' 2003
per cent and the
further' the provisions
"t
U"tte Added
ol tne-Ncrli'-^'i,'l"t
credit and special
tax
ft;Jiltrisil11l'"'i!iiiii:li,'j1;i;:$ri';;;upp'lvin
t
tax
relation to the
PaYable
"sub-sections
(2)'
(b) in sub-section
lo''':n:'*o'Os
be inserted';
shall
t"a (1AA)"
words "sub-s""t'"'i' i'l"iioi
ti"lYs
(3)' for'the wordl'"*b'
(c) in sub-section
inserteo'
shall be
words
"sub-s*tt#d;'&i;"0
(lAA)"
(1) and (1A)" the
(l)
and (1A)" the
\"'
2
n,,iinrl{ldment
(l)
in
ser
lnrerted,'nam;t"rJ
.,(viii)
banks and
of
1e.e'--rnthe Kerala
Stamp Acr, le5e
2' in clause (l), after
item (vii) the fouowing
items sha,
agreement relatingro_
installation
ar
company and the
l.xTff:: :?*:J:,':;,:l:iTlx:l,::3_*
(2) in the SCHEDULE,
in serial number 5,_
(a) clauses- (e) qa^u
(0 aro
\-/ and 1r7
and th,
tne entries against
be omitted;
4.
Varuarion
(b) clause (g) shall
be re_leftered as
clause
Amendme
;";:';;';;ii;Ili;#r!
Ie60'-rn
"appellate authorities,
auihori ti es
;;ffifi
(b) in the
it in column (3),
shall
(e).
the Kerara courr
Fees and suits
irl of sect.
for the words and
;;; il #i ;"r"Tn 76, C""n,i,
symbols
l*
1""*.,,appe,ate
J'f i*.#
fr ln":l.t: ",
":i]it
scHEDuLE,,,,",,"j
(i)
in sub-item (C), for
the
Income' subject
to u
,
aJ:ff"'fi::',
(ii)
in sub_item (D), for
the
i;
5.
il;r*j
Amendment of Act
of le60), in the sCHED
u" o,nitt"a;(u)
.,r.titutJ
"one per cent of the
;;il
(3
en "one per cent of the
,u"iru;;, ;"'T:ntry
assessed net
A;1il T#.HJi::'ung ",n"",', ;;;;; (3 ) asainst
or five hundred r'r.ipe;::#,T::||.Til:j* sought roa sJulect
wealth, subject ,o
u
_"1":*
to a minimum
o"
assessed
;'i
'nu"iru;;t;:::1:,""tt1
:Td'..n'i::' "n d'up""i relier
)
" f"; agai n st
sought
e t una.ea .,ip.;:''J;,"::t":ll|.;
De substitured;
';;j;;;
n**i{;"ru,#T
(17
berween a
(a) in sub-sec,i*
..
be
of ATM machine, between
lolnowner or renewal
of such un urr""rn"nr.',
d;;
(ix)
of Act I7
t7 of 1960._In
uLEi,i;;"ln-;,je
;
Kerala Plantation
Tinx Act, 1960
in sub-item (d)' the
words "and up to
twenty five hectares,,
shali
(b) sub_item (e)
and the enhies against
it, shall be omitted.
6.
Amendment oJ'Act 32 of 1976.-In the Kerala Tax on Luxuries Act,
of 1976), in section 4, in sub-section (1), after the first proviso, the
following proviso shall be inserted, namely:1976 (32
'
"Provided that no tax under this Act shall be levied on hostels run
directly by the educational institutions and working woman's hostels run by
religious or charitable institutions registered under the Travancore-Cochin
Literary, Scientific and Charitable Societies Registration Act, 1955.,,.
'
7. Amendment of Act 15 of 1991.-In the Keraia Agricultural Income Tax
Act, l99l (15 of 1991), in the SCHEDULE,
(a) in itern (3), the words 'domestic company or' shall be omitted;
(b) for item (4) the following item shall be substituted, namely:-
"(4) In the case of domestic company
per cent of the total agricultural income.".
8.
Amendment of Act 30
2003 (30 of
o/'2004.-In the Kerala
Value Added Tax Act,
2004),-
(1) in section
6,-
(a) in sub-section
corumn
or foreign company thirty
(a,,fjl ff:ffi"r
(l),-
t:1,#
ffi ,Ti':d:,,',fii1, i:'lTl,9'
"all types of plastic carry
t' the entrv in
bctgs including non-woven poly
propylene bagt".
(ii) in the eleventh proviso, for the words
words, "3lst March, 2017" shall be substituted.
substituted,
"-3.1sl
March, 2016", the
(iii) for the fourteenth proviso, the following proviso shall
namely:-
be
:
"Provided also that the sale of cardamom, at the point of auction,
conducted at the auction centre holding a valid license issued by the
-
Spices Board under the Cardamom (Licensing and Marketing) Rules, 1987, shall
be exernpted from tax."
(iv) after the sixteenth proviso, the following provisos and Note
shall be inserted, namely:."Provided also that cooked food manufhctured by the prisoners and sold
by the Kerala Prison and Correctional Services Department shall be exempted
from tax.
4
Provided,that the'tax payable under this Act in relation to the works
contract of robotic or automated car parking systems, shall be five per cent.".
Note:-:fhe seventeenth prbviso shall be deemed to have come into force
on and from lst day of APril, 2011.
(b) in sub-section
(5),-
(i) for the words "sixty lakh rupees", the words "seventy five lakh
rupees" shall be substituted;
(ii)
in the third proviso, for the words "sixty lakh rupees", the
words "seventy five lakh rupees" shall be substituted;
(iii) in the sixth proviso, for the words "sixty lakh nrpees", the
words "seventy five lakh rupees" shall be substituted;
(c) in sub-section (7), in clause (b), the following explanation shall be
inserted,
namely:-
"Explanation:-For removal of doubts it is hereby clarified that the
building materials referred above shall include basic building materials and other
goods essentially required to make the building effectively functional and
capable of being used by the unit, depending on the activity carried out by the
said unit."
(2) in section 8, in clause (a), in sub-clause (ii) in the third proviso, the
following words shall be added at the end, namely:-
"and with respect to works contract awarded by Government of
Kerala, Kerala Water Authority or Local Authorities up to 3lst March, 2016'"
(3) in section ll, in the proviso to sub-section (5), the words' letters
and figures, "for the period up to 30th September, 2010", shall be omitted.
(4) after section 25C, the following section shall be inserted, namely:-
"25D. Special provision for bakery dealers to settle arrear.Notwithstanding anything contained in this Act, a dealer in bakery
products, sweets, confectionary and other food products sold under
brand name registered under the Trade Marks Act, 1999, who had
not remitted the tax as per the prescribed rate, for the period up to
2013-14, may opt for remitting the differential amount of tax on or
before 30th June,'2016 and those who opt for payment of tax under
this scheme will be exempted from payment of interest and penalty
due thereon subject to such conditions and restrictions as may be
prescribed."
)
(5) in the SCHEDULES,-
(a) in First Schedule,-
(i) in serial number 2,
inserted, namely:-
"(10)
(l
l)
Braille
after item (9), the following items shall be
Printer
'r't:n'r'
Assistive devices for visually
challenged persons like white cane
and electronic cane.
(ii) in serial number 9A,(a) in the entry against
it in column (2), the following
words
shall be added at the end, namelY:-
"with or without MS'rod and MS-flat"
(b) the fbllowing Note shall be inserted' namely:-
"Note:--This entry shall be deemed to have come into force on and from
the lst day of April, 2005."
entries against it in column (2)
respectively, be inserted
shall,
entries
and
and (3), the following serial number
(iii) after serial number I lA and the
namely:removing pesticides residue from vegetables,
manufactured by units using the technology developed by Kerala Agricultural
University or other recognized institution."
"l 18. Cleaning liquids for
(iv)forserialnumber16,andtheentriesagainstitincolumns(2)
be
and (3), the following serial number and entries shall, respectively,
substituted, namelY:-
"16. Earthern Pots made from
earth claY including flowerPots'
receptacles, statues and earthern
oven'
'r'r':s*"
(b)inThirdSchedule,inserialNo.6g,initemNo.(29)aftersub.itern
(g), and the entries against it in columns (2) and (3)' the following sub-item'
*a Note shall, respectively be, inserted, namely:"ntty
"(g) Mobile phone charger sold along
'r':r'{'
with mobile phone in sealed pack'
6
' Note.-This
entry shall be deemed to have come into force on and from
- the lst day of April,
2005."
DECLARATION UNDER TTM KERALA PROVISIONAL COLLECTION
oF
REVENT.TES
ACI
l98s (ACT 10 OF 1935)
It is hereby
declared that it is expedient in the public interest that all the
Bill shall have effect on and from the lst day of April,2016
under the Kerala Provisional collection of Revenues Act, 19g5 (10 of l9g5).
provisions of this
STAIEMENT OF OBJECTS AND REASONS
The
Bill
seeks
to amend the following enactments to give effect to the
financial proposals of the Government of Kerala for the financial year 2016-2017
as announced in paras 432 to 44a, 442, 444, 445, 449, 4s0,453 and 454
of the
Budget Speech 2016-2017, namely:-
l.
Kerala Surcharge on Taxes Act,1957
2. The Kerala
3'
4.
Stamp
(ll of 1957)
Act, l9S9 (17 of 1959)
The Kerala court Fees and suits valuation Act, 1959 (10
Kerala Plantation Tax Act, 1960 (17
of
of
1960)
1960)
5. The Kerala Tax on Luxuries Act, 19?6 (32 of 1976)
6. The Kerala Agricultural Income Tax Act, l99l (15 of l99l)
7. The Kerala Value Added Tax Act, 2003 (30 of 2004)
FINANCIAL MEMORANDUM
The Bill, if enacted and brought into operation, would not involve
any
additional expenditure from the consolidated Fund of the State.
MEMORANDTIM RECARDING DELECATED LEGISLATION
clause
8 sub-clause (4) of the Bill, which proposes to insert a new
section 25D in the Kerala value Added Tax Act, 2003 -(30 of
2004), seeks to
empower the Government to prescribe the conditions and restrictions
under
which payment of interest and penalty will be exempted to dealers
in bakery
products, sweets, confectionery and other food products
sold under brand name
registered under the Trade Marks Act, 1999, who had not remifted
the tax as per
the prescribed rate, for the period up to 2013-14 and who opted
for payment of
tax under the scheme as per the said provision.
,|
The matter in respect of which rules are to be made are either
administrative in nature or matters of procedure and are of routine in nature.
Further, the rules after they are made, will be subject to the scrutiny of the
Legislative Assembly. The delegation of legislative power is, thus, of a normal
character.
OOMMEN CHANDY
zs't
/20t6.
8
EXTRACT FROMTHE RELEVANT PORTIONS OF THE
KERALA SURCIIARGE ON TAXES ACT. 1957
ttt ot tnt"
*;
**
**
,r.+
3' I,evy of surcharge o.n sales and purchase taxes.-(r) The tax payable
under sub-section (l) of section 5 of the Kerala General Sales Tax
Act, l^96i, by
a dealer in foreign liquor shal_l be increased by a surcharge at the rate
of ten p",
.
and the provisions of the Kerala Generai sales TaiAct, 1963 shall
"*i,
apply
in
relation to the said surcharge as they apply in relation to irr" tu" payable
under
the said Act)
(1A) The tax payable under sub-sections (r) and (2) of section 6
of the
Kerala value Added r1x_ Ac], 2003 (30 of 2004), ottter ttran declared goods
as
defined in section 14 of the central sales Tax Rc[, l9s6 (central
Act 74;f 1956)
shall, in the case of national or multinational companie.'n o"iionin!
in the State
as retail chains or direct marketing chains who import
nui t"!, than fifty
per cent of their stock from outside the State or country
and not less than
seventy-five per cent of whose sales are retail busines-s,
and whose total
turnover exceeds five cr-ore rupees per annum but excluding
ro"rt class of
-may
dealers of certain commodities, which
be notified by the G"overnment from
time to time, be incr',ased.by ggrgharge at the rate
po'cent, and the
provisions of the Kerara Value Added rai Act,
2003 (30"'f
shuli appiyln
relation to the said sucharge as they apply in relation
to trre ta^'payable under
the said Act.
;;;
,{io6ij
l
Explanation -f.-For the purpose of this section big
retail chains and direct
marketing chains mean retail sales outlets or part
of retail sales outlets of
companies which share a registered busi'ess name
or commercial name by way
of franchisee agreements
promotional activities.
oi
Explanation,l/'-For
otherwise with standardized sates, purctrase and
th_e
purpose of this section 'retail business,
shall
mean sales to persons other than registered
dealers.
(2) Notwithstanding_anything contained in sub-section
(l) of section 22
of the Kerala General saleiTarAct,-1963 and in.uu-r".tioniiiJrr"",irn
30 of
the Kerala value Added *--o"q 20d3, no dealer
referred to in'.uu-.otion (r) and
(lA) shall be entitled to collect the surcharge payable under
the said sub-section.
(3) any dealer who collects the surcharge payable
under sub-sections
and (1A) in contravention of the provisioris
.ir,uu-r""tion
iti;.;;ii b"
punishable with fine which may extend
to one tho'sani *p"r.-uro no court
-or
below the rank of a Magistrate
tn" First class shalr try ;t;;i
offence.
(l)
:1.
:t
:la
l*
rt
l.
**
'9
PORTIONS OF
EXTRACT FROM THE RELEVANT
'y'*iiiiffrrAcr'
{'r&
tf{'
:t'*
{.*
lese
requires'unless the context otherwise
Definitions._-ln this Act'
(a) "bond" includes-
to pay money
a person obliges himself
any instrument whereby
be void if a
that the obligation shall
to another, on "*An'ons
case may be;
or is not performed as the
specified Act is performed'
payable to order or
by a witness and not
attested
instrument
(ii) any
money to another; and
0
bearer,
whereby;t""""
obliges himself to pay
himself to
whereby a person obliges
(iii) any instrument so attested'
to another;
agricultural produce
deliver grain or other
*rF
'f*
ttl|
t('l
al$r
lnClUOeS also-Lr^ property'
'
--^naffw and includes
immovable
(l) "lease" means a lease of
(1)
MaraYaPattom;
Qi) KanaPattom;
(O
not being
a
undertaking in writing
an agreem€nt or other
rent
occupy' or pay or deliver
of a lease' to cultivate'
counterpart
for immovable ProPertY;
executed by the
undertaking in writing'
other
or
(iu) an agreement
oPium tbrms;
renters of abkari and
are let;
tolls of any description
(v) any instrunrent by which
signify that
for a lease intended to
(vi) any writing on an application
and
the aPPlication is granted;
(vii) a patta.
tri
**
,*,r
*,r
l0
THe ScHeouLs
.t/.
Description of instrumenr
No.
(t)
Proper Stump Duty
8)
(3)
Acknowledgement of
a
amount or value
a.ltF
exceedilg twenty rupees
in
*.itt"-Y
o: sieled by, or on behalf
of,
a debtor in order
n,.r^_ .^
_-1
to supply
*ia"r,"" ;; ;ilTll:l
any book (other than
a Uunt".,, purr"i"*l
or on a
paper when ,u"i,
n11ce
iooi oJilp", i, r"rt
:o.l:,"
1r
rn the creditor's
possesslon:
provided that such
acknowledgement
does not contain
any promise ro pay
the debt o, uny ,il;;;""
ro pay
lnterest or to deliver
a
when the amount
When
it
",;"-:::: ::,::::Ji" l;,
exceeds Rs. 1,000:
Ten rupees
ri:*
+{.
**
Agreement or memorandum
of an agreement_
(a) if retating to the
sale
le of a hitr
of a bill of
^---,
^r exchange:
**
(e)
Five rupees
,,+
One rupee
*:f.
**
If
relating to installation
of ATM machine, between
a bank and the land
owner
,"*r"i',i"*",
",
One thousand two
hundred and fiity
rupees per year in
panchayat areas
(0 If relating to
installation of Mobile
Tbwer, between
company and the
land
renewar rhereof
(e) ,'.
*
;, ;;;#il;:
and two thousand
and five hundred
rupees per year in
other areas.
a
Five
Two
**
rupees
:1.
,3
thousand
rupees per year
*'t
hundred
1i
RELEVANT POMIONS OF THE
COURT FEES AND SUITS VAL{JATION ACT
EXTRACT FROM
KEMLA
TFTE
(10
tf
,1.
rl.
oF
1960)
*
*r*
*:1.
contain-ed
Seition 76. Legal Benefit Fund'-(l) Notwithstanding anything
for
competent
be
shall
it
force,
in
being
time
in this Act of any other law ior the
in the Gazette, in
the Government to levy an additional court-fee, by notification
to tribunals
,"rp"", of original petiiions, original applications, appeals or revisions
a rate not
at
Courts'
Criminal
or appellate authorities, other than Civil and
exceedingonepercentoftheamountinvolvedinthedisputeincaseswhereit
iscapableofvaluationandinothercasesa|aratenotexceedingonehundred
*p"", for each original petition, original application' appeal or revision'
t*
**
't*
{.*
ScHenulp I
Proper fee
Particulars
Article
(3)
Q)
(1)
:**
*'f
*,1.
SctlsouLe II
1. *
:F x,
,t]
2.*4.**f
Memorandum
3.
of appeal from an order inclusive of
Section
an order determining any question under
47 or Section 144 of the Code of Civil Procedure'
1908, and not otherwise provided tbr when
Presented*
*rf
*
rl.
rF:f
(iii) to the High Court(A) From an order other than an order under the
Kerala Agriculturists Debt Relief
't*
**
Act'
:*
't
1958'
l2
(l)
Q)
(3)
(Q From an order of the Appellate Tribunal
under the Income Thx Ac! 1961,(a) Where the total income of the assessee as
computed by the Assessing Officer, in the
case to which the appeal relates is one lakh
rupees or less
rt*
Five hundred
rupees
rt*
(c) Where such income exceeds two lakh rupees
One per cent
the
of
assessed
income, subject
to a maximum
of ten thousand
rupees.
't
rt
rt*
@) From an order
,13
*
of the Appellate Tribunal
under the Wealth Tax
Act,
lgi,l.-
(a) Where the total net wealth of the assessee
as computed by the Assessing Officer, in the
case to which the appeal relates is one lakh
rupees or less
:1.*
:trl.
:f{i
(c) Where such net wealth exceeds two lakh
nrpees
Five hundred
rupees
**
One per cent of
the assessed net
wealth, subject
to a maximum
of ten thousand
rupees.
*rl
13
EXTRACT FROM THE RELEVANT PORIIONS OF THE
KERALA PLANTATION TAXES ACT. 1960
(17
rl
rB
oF l%0)
rt
*rf
*r(
13
ScHsoulr I
[See Section 3 (1)]
Rate
l. Where the aggregate extent of plantations held by
Nil
a
person does not exceed two hectares
Where the aggregate extent of plantations held by
person
a
is,-
(a) above two hectares and up to four hectares
two
rupees
hundred
for
each
one hectare above
two hectares
(b) above four hectares and up to eight hectares
three
rupees
hundred
for
each
one hectare above
two
hectareS
(c) above eight hectares and up to fifteen hectares
four
(d) above fifteen hectares and up to twenty five hectares
two hetares
five hundred
rupees
hundred
for
each
one hectare above
for each
one hectare above
rupees
two hectares
(e) above twentY five hectares
seven
rupees
hundred
for
each
one hectare above
two hectares
t!
l.
t4
EXTRACT FROM THE RELEVANT PORTIONS OF
TIIE KERALA TAX ON LUXURIES ACT, 1976
(32
oF
1976)
r.,r
'{.'r
*,i
4. Levy qnd collection of tuxury
tax.l\ subject to the provisions of this
Act, there shall be levied and collected a tax, hereinafter called the .luxury
tax,, in
respect of any luxury provided,
(i) In a hotel, house boat, hall, auditorium or kalyanamandapam or
including those attached to the hotels, clubs, karyanamandapam and places
of
the like nature which are rented for accomodation for ,"rid.n"" or
used for
conducting functions, whether public or private, exhibition;
(ii) by Direct-To-Home (DTH)
Service provider;
(iia) in a serviced apartment;
(iii) in
a hospital; and
(iv) in a home stay:
Provided that the sub-section shall not apply to
(i)
halls and auditorium located within the premises of places
of
worship owned by religious institutions;
(ii) to the retiring rooms and dormitories in the railway
stations managed
by lndian Railways.
(iii) to dormitories
15
EXTRACT FROM THE RELEVANT PORTIONS OF THE KERALA
AGRICULTURAL INCOME TAX ACT. 1991
(1s
{. rf
r*
oF l9el)
,.
*t
:t:1.
ScsE,our-e
(,See Section 3)
RATES OF AGRICUUTURAL INCOME TAX
(1) In the case ofperson other than a company or co-operative society,
(a) Where the total agricultural income Nil
does not exceed Rs. 40.000
(b) Where the total agricultural income l0 per cent of the amount by
exceeds Rs. 40,000 but does not which the total agricultural
exceeds Rs.
(c)
60,000
income exceeds Rs. 40,000
income Rs. 2,000 plus 20 per cent
exceeds Rs. 60,000 but does not of the amount by which the
total agricultural income
exceeds Rs. 1,00,000
Where the total agricultural
exceeds Rs. 60,000
(d) Where the total agriculturai income Rs. 10,000 plus 30 per cent of
the amount by which the
exceeds Rs. 1.00.000
total agricultural
income
exceeds Rs. 1,00,000
(2) ln the case of a firm, thirty-five per cent of the total agricuitural income
(3) In the case of a domestic company or co-operative society,(a) Where the total agricultural income 35 per cent of
agricultural income
does not exceed Rs. 25,000
the total
(b) Where the total agricultural income 40 per cent of
agricultural incorne
exceeds Rs. 25,000 but does not
the total
exceeds Rs. 1,00,000
the total agricultural income. 45 per cent of
Rs 1,00,000 exceds Rs. 3,00,000 agricultural income
(c) Where
e<ceeds
(d) Where the total agricultural income 50 per cent
exceeds Rs.
3,00,000
the total
of the total
agricultural income
(4) In the case of foreign company, eighty per cent of the total agricultural
income.
257
t20r6.
t6
EXTRACT FROM THE RELEVANT PORTIONS OF THE KERALA
VALUE ADDED TAXES ACI 2003
(30 oF 20Ot)
:**
*rt
INCIDENCE
{.
18*
,la
AND LEVY OF TAX
6' Levy of Tax on sqre or purchase of goods.l l) Every dealer whose
total
turnover for a ye'ar is not less than ten lakh rupees and every
importer or casual
trader or agent of a non-resident dealer or deaGr in jewellery
oiioro, silver and
platinum group metals or silver articles or contractor
or any state Government,
central Government or G.overnment of any Union Tenitory or
any department
thereof or any local authority or any uuiono*ou, body or
any multi-level
marketing entity, their distributor and/or agent engaged in multi-level
marketing
whatever be his total turnover for the year, shall bi iable
to puv tax on his sales
or pnrchase of goods as provided in this Act. The liability io" p,u,y
J r --r tax shall be
on the taxable
turnover.-
(a) In the case of goods specified in the Second
and rhird Schedules at
the rates specified therein and af all points of sale
or suctr-gooas within the
State and in the case of goods specified beloq
mentioned in column(4), at ail
points of sale of such goods within the States
namelv:_
.r/.
No.
(l)
Description of Goods
HSN Rates of tax
Code in Percentage
Cigars, cheroots, cigarillos and cigarattes
tobacco or of tobacco substituteJ
@
(3)
of
Aerated branded soft drinks, excluding soda
Carry bags made of plastic including poly propylene,
2q2
**r.
20
rr*rt
20
which have a vest type selfcarrying feiturls to
carry commodities
(3A) i(*'t.*
(38) **'t*
(4) ****
(5) ***x
*
:* rf
{.,i
*
rt**
r* rl.
*
rt*rl
,t**
(6)
(7) ****
*'r'**
:{.
*:*
:1.
rf
*
'f**
{.
,1.
'1.
*r*
rl
:t rf rt
rl.
*
ritf*
rt
17
(f) In the
rract,
case
of rraaoro- ^r -_ - !
where,n",J;;."l,ffr;:
the rate
of
ilx.J:J;l nff":j;:
14.5 per cent and when
the transfer is in the form
rates prescribed under
the
respective Schedules:
nfi:il:;
of
goods at the
provided that
where the sale is to the
Administrator, Union Territory
LakshadweeP, Laccadive
of
co-operative Marketing
Federation, Kozhikkode
or the Lakshadweep Harbour
works and registered dearers
certified by the
Administrator, Union T'erritory
of Lakshadweep, the tax payable
under
clause (d) shall be at the
rate of five per cent, subject
to
rv
such
rqur
--vJ:v!
conditions
may be prescribed:
as
'
provided further
that a bar attached hotel,
as defined under explanation
to
clause (c) of section g
or a dealer in petroleum products
shall
be
liabre
to
pay
tax under this sub-section
if his total turnover under this Act
and the totar
turnover under the Kerala
General sares Tax Act, 1963
(15 of 1963) together
is
not less than the limit specified
under this sub-section:
Provided also that where
the total t
importer or casuar trader
or agent or
of gold, silver and pratinum group "
metals and sirver articles
or contractor,
exceeds ten rakh rupees
for the first time during the
course of an year, such
dealer shat be riabre to pav
tax under thi, ."b-r;;;;
;;;;
excess of ten lakh rupees;
";,r: turnover in
but he shall be liable to p^y
t^i".r"rp""tiu"
or tr,"
total turnover in any subsequent
year:
""";:l;J;;:,:,i"J:::,""JT:Jff#
Provided also that in respect
of works contracts
executed under
the sampurna Gramin Rosghar yojana
or the beneficiary committees
using the
Member of parriament/Member
of Legisrative;;r;;;;;
Naturar
calamity Relief Funds or sarva
".
siksha Abhiyan Funds, or
funds of Local
Authorities or command Area
Development Authority
and oFD works through
Beneficiary
Farmers'Associations or
Karshaka Samithy wherb the
total amount
in respect of individual contract
does not exceed ten rakh
rupees, the tax payabre
under clause (f) above shall
be five per cent; under the Jalanidhi
project
(KRwsA)' the tax payable
under crause (f) above shall
be four per cent
18
and the
in respect of individuat ":-l::l"tt
amount
total
the
of
irrespective
payment even without taking
beneficiary committees shall
registration under the Act:
Provided also that,
be entitled to receive
where'Police
Stores Department' Central
Canteen; or
and National Cadet Corps
(a) the sale is to or by Canteen
Service
Canteen, lndian Naval Canteen
(b)
the sale is by Military' Naval'
Air Force or by the one subsidiary
CanteeneachthatmaybeestablishedbytheKeralaPoliceineachdistrictsof
the goods purchased
central police canteen, of
the state and affrliati to the
fromCanteenStoresDepartment,CentralPoliceCanteenorfromdirectsuppliers
case may be; and
authorised by them, as the
sale is to Defence personnel
(c) in case of motor vehicles' the
the authorized
of authorization duly issued by
or ex-seryicemen on production
or
Indian Naval Canteen Stores
officer of the Canteen Stores Department'
Air Force Canteen,
as the case maY be;
such conditions and
(b) or (c) above shall' subject to
the tax payable under (a)'
to such goods:
be half the rate applicable
restrictions as may be prescribed,
Providedalsothatinrespectofsaleoff-uelandlubricantstoforeign-going
(a) or
the tax payable under ciause
vessels,
fishing
than
other
vessels,
(d)aboveshall,subjecttoconditionsandrestrictionsaSmaybeprescribed'
be half Per cent:
products'
of goods other than petroleum
Provided also that where sale
manutbcturedinthestateistoRailways,KeralaStateElectricityBoard,Kerala
StateRoadTransportCorporationorKeralaWaterAuthority,thetaxpayable
underclause(d)aboveshall,subjecttosuchconditionsandrestrictionsasmay
be prescribed, be at f-rve per
cent:
and social
statues of national leadlers
Provided also that sculptural
(e) and (fl of
tax payable under clause
from
exempted
be
shali
refornrers
sub-section (l) of section 6:
19
of transfer
(f), in respect
tax payable under clause
Provided also that the
form' shall be at
goods but in some other
of
form
the
in
not
of declared goods
the respective Schedules:
the rate prescribed under
Providedalsothattherateoftaxonthesaleofusedmotorvehiclesshall
sub-section (2):
no tax is payable under
tft"t
cent
per
0'5
at
be
tn
"tO
to the sale of Natural Gas
relating
turnover
the
Provided also that
February' 2015 to
for the p"tioO from 4th
from-tax'
*"t'Ot"O
be
any form shall
3ist March, 2016:
in the house-boat
food and beverages served
Provided also that cooked
Act' 19?6 (32 of 1976)
the Kerala Tax on t'*utl"*
tax
paying compounded
"naer
2006:
with effect from lst April'
be exempted from tax
shall
ProvidedalsothatpayableonAyurvedicCosmeticproductsmanufactured
and Cosmetic products
under a drug
under- the Drugs
Act' 1940 (Central Act 23
License and Cosmetics
li""t'; g*"t"a
manufactured under
"
O"U
ofl940)containingaddedmedicamentshavingsubsidiarytherapeuticor
sub-section (l)
under clJuse (d) of
notified
tnot"
ini
prophylactic uses
of April' 2005 to the
on and from the I st day
period
the
for
6,
of section
per cent:
2009 shall be at four
12th day of November'
at the point of
sale of cardamorn'
the
on
tax
the
that
Provided also
1987
auctiononly,conductedattheauctioncentreholdingavalidlicenseissuedby
and Marketing) Rules'
tl-i""*itg
Cardamothe
the Spices Board under
two Per cent:
shall be at the rate of
by Milk Suppliers'
food and beverages sold
cooked
that
also
Provided
co-operative
s*i"i
;;;;J
.-Y f::"tT::
ffi:::il:;":;"fi:'f: :i:i
canteens estao
(21 ;f 1969) through their
20ll:
with effect from 31st April'
be exernpted f'o- i*
ProvidedalsothattherateoftaxforthesaleoffurnaceoiltoCoastal
CargoVesselasfuel'shall'subjecttosuchconditionsandrestrictionsasmay
be 5 Per cent:
be
Ptescribed'
:krlc
'' '
'
20
**
r8,f
*{(
,",-,lll,I'ff ij;1ti,:lJTH"",T:l';H
sub-section
:13
( r ),
,.
but subject to
(a) an importer; or
anv sale in the course
of interstate trade or
."r.#:."":ff;::l"ut"
(c) a dealer registered
under the central Sales
Tax Act, rg56 (central
Act 74 gf 1956); or
(d) a dealer effecting
first taxabre sale of goods
within the state; or
(e) a dealer covered
(f) a contractor,
whose total turnover
opti
on, pay tax
"
by Sub-section (lA); or
f^. o .,^^.- :
*'
:;, ;,J :1,ff*.11T
{i ;,iil'
oipuying
"ill*: l,:
:"_:
goods as presumptive
i'1i tax instead
,","..tji"'',1llJT; "
o*,"r
tax under sub_section
(l):
holding stock of goods
purchased in the
course
of
",TT
on t o p ay,
".
fo,owing tre quarter"*"",t
F: he
in which
has ,"ra *"r, goods
in th" ,L" and paid tax
under-sub-section (l)
of section u *o ill registration
under the centrar sares
Tax Act, 1956 (centrar
Act 74 t aniiit,
""rcered:
provided further
that any dealer covert"o
by sub-section (1A)
option pay tax uno",
may, at his
ttri. sub-section *o,
:'rJ'f#': "olrff# ; t ff jT
opti
such period as may
be prescribed:
also that a dealer shall
not br eli8ible to opt
under this ,uuo"",i*
for payment of tax
if his total tumover .ne
provided
lil'lT,Xrl"ii*underthisActor*o".ii"'.T,T:"::i:i:il:Hlii'l*T
lakh rupees during
n" ,"".0."""aing tt y"".
to which such option
:ti"::"
"
Provided also that a
dealer shall not be
I
pav presumptive
tax under
if nt'
turnover is ,ess han
ten lakh rupees:
'otu'
this sub-section'
llltlt'l:
21
.
Provided arso that
dealers covered under
this sub_section whose
total
is berow rupees twentv
:;H::,H;J
rakhs,
atthe.rare"'-;;:::1#ilX'.::'ff
;:l::"nfi:scribed'
Tff
mav;;;;,,,
sum amount
l;::;h::in",Tif "J:,:ll''l#
Such dealers shall also
file an annuar decraration
as may
Provided also that rrnrr'irtrd+^-ri--
madethereun"r,;;f
'J;#:?:;:il:'jlT:rT:,?:lT";:Tff
this sub-section, has exceeded
the turnover limit during
,r,"
ff::J"
eligible for input tax credit
on the turnov"r in
il.#::
"o*r" of an year, he
"*."r, of sixty rakh
Note:-The sixth proviso
sha' be deemed to have come
into force on and
from the lst dav oro-oltt,
200s ir;"r;;ve of anv
amendments made in the
tumover limit specified
in this ,uU_.".iion.
(7)
Notwithstanding;;rr,
1*
contained
," *o-r*,,"n
(l),
(a) any authorized retail
or wholesale distributor dealing
in rationed
articles namely, rice, wheat
and kerosene uno"r,rr"
Kerara
Rationing
order; 1966
shall not be liable to pay
tax on the turnover of such
goods;
(b) sale of any buirding
materiars,
industrial inputs, plant and
including components,
machinery
spares, tools and consumabres
in reration thereto to any
developer or industrial
unit or
Zone in the state for setting "rt*ri.rr."nis situated in any speciar Economic
rh; ;;'o, ur" in the manufacture
"p
of cither
,o such conditions
or restrictions, as may be prescribed,
be
:""ff,::}|il,#t
'Provided that
the exemption covered
by this clause sha, be applicable
a deemed sale involved
to
_ -.
in a
s works
wvrAr ."";;;;
sonrract executed through
a
sub-contractor
also.
**
,1.
*
,t tt
:13
*
tl.*
t*
,la:*
{.
tt
22
anything
compounded rates'-Notwithstanding
at
tax
of
Payment
' 8.
6contained in section
interior
other than t^t:tt
contractor
works
(i)
any
:n-o :-t1:-n"n"
(a)
decorationandfurnishingcontracts'electrical'refrigerationor'airconditioning
of plant' machinery'
to supply and installation
generating
contracts or contracts 'juti"g
escalators, generators'
hoists, elevators (lifts),
eranes,
shutters,
rolling
and air coolers' deep
machines'.air conditioners
weighing
sets, transformers'
slabs and stones
of tiles (except brick tiles)'
utitinat
oi
laying
freezers,
from other States or
any goods into ttre State
*n"
marble)
(including
'tn""'
Countryforincorporationiitheworkscontractsand/orwhoisregisteredunder
(central Act74 of 1956)' may'
Sales TaxAct, 1956
the
of
the provisions
with the provisions of section
""ro"t
of paying tax in accordance
at his option, instead
along with tax
of the whole contract amount
the rate of i" p"' cent
6, pay tax at
section
una", ,uU-*ction (2) of
6'
,r*
**
in clause (i)
falling under the description
not
contractor
works
(ii) any
in accordance with the
instead. of paying tax
opiion'
fti'
at
may,
above
per cent of the whole
shall pay tax ut th'""
section'
said
the
of
provisions
6:
*in tax under sub-section (2) of section
amount
contract
"t"",
Providedthattheprovisionsofthisclauseshallnotapplytoanyworks
goods:
of material is in the form of
contract in which tft"-t'un'f"'
-compounded
ProvidedfurtherthatnotwithstandinganythingcontainedinthisAct'a
rate in accordance with
pay ta* at
to
intends
who
works contractor
an year' any'
works undertaken by his during
all
of
i"
ciause
this
works' file a
'"'p""i
for compounding for indllldual
application
separate
instead of filing
before 30th dav of April of
t*
under this clause
o";;;;'of
single option
to eligibility:
'"'
the option relates' subject
which
the year to
this clause'
case of any work compounded-under
the
in
that
also
Provided
2014' the
fully or partly as on 3lst 'March'
and which t"-uin'^*"*ecuted
works in accordance with
to pay tax in respect of 'u"h
continue
may
contractor
for compounding
as existed when he had opted
of tt''i'
the provisio"'
"luo'"
uo to 3lst March' 2015'
23
:L*
:1.:t
't {.
ll. Input
Tax
*!r
**
,|+
:1.
Credit'*(I)
*
,ft
of this section'
Subject to the other provisions
tax under sub-section
any registered dealer, liable to
eligible for inPut tax credit'
,l
*:B
*,1.
tN.
(l)
ofsection 6' shall be
d.*
'1.
for the purchases'*
(5) No input tax credit shall be allowed
from a dealer not liable to tax under
(a) from an unregistered dealer or
registration has been cancelled;
section 6 or from a dearer whose
*
rl. tlt
{. {.
t,s
'1.
(x) of section 2:
(o) of goods notified under clause
Providedthatwhereadealerremitsdifferentialtaxinaccordancewiththe
2010' issue
for the period up to 30th September'
provisions of the Act, he may'
debitnoteforthetaxamountsubsequentlyremitted,tothepurchasingdealerto
covered in the debit'
tax credit to the extent of the'tax
claim input
*:t
l.
:1.
*25c. speciat provision regarding
{. ,}
assessment
**
of dealers paying
(4) of
anything contained in sub-section
presumptivelcx'-Notwithstanding
other proceeding
(2) of section 12, if any assessment or
section 1 I or sub-section
of a dealer to pay
authority denying the eligibility
assessing
the
by
initiated
is
(5) of
of conditions enumerated in sub-section
presumptive tax for violation
rebate' as the
be granted input tax credit or special
section 6, such dealer shall
case maY be.";
*t
25712016.
**
*r.
**
24
ScHeouLes
t'ott
scusout-p
Goods Exempted
,"oo,
J/.
Description of
Goods
No.
HSN Code
(r)
a)
*ffij:'T"j'Pr"'@
(3)
(1) Spades and
shovels
8201.10.00
l. {<
)*
i.
**
,r*
Aids and impleme
nts used bY handicapped
persons
(l)
**
Orthopaedic or
fracture appliances
9021.10.00
,**
:i*
(9) Inha Ocular
Lens
9002.10.00
9,A
f,il""Tr"t
concrete frames
rt
ti' aoo..la
r* {.
*,i
**
liA
,**
16
**
,t*
for rhe manufacture
:*O
of bricks and
trles given
"ll?
under entry lg
of IIIrd
r*
**,**
Schedule
'i*
Earthen pot
ri rt
6914.90.00
!r:*
,f
rF
:f {.
{. {.
,ta
rf
t*
i.
25
TexeeLe @ 5%
Turno ScHr'oule
(a)
see section 6(1)
HSN Code
DescriPfion
s/.
(3)
No.
(2)
0)
"-t""l*"ffi
;r?;;;*"allY
a-nd
(r
t{trticultural'*lt"illi-1"'
antmat'
or not driven bY
Parts thereof
8437
) A c.,: :ttTt;^l""tt"i.Illi,il
J:":l"rtiv ati on,
tor sc
machinery
ground rollers
lawn or sPorts
(2)
machinery' including
Harvesting or threshing
gfass or hay rnowers'
straw or fodOer lalers'
eggs'
sorting' or grading
machines
fo'
;;,^;;oit'"'
"t"*ing'
ugtituttural Produce
._
8433
**
Products
Electrontc
(1) Word processing rnachines'
69 IT
i
typewriters'--
8469.00.10
@ Word Processing
(b) Electronic
:k
machines
8469.00.20
tYPewriters
,N,f
*
(29) Electrical apparatus
tne telegraphy-
or
for line telephony
sets with cordless
(a) Line telephone
8517.11
**
handsets
8517.69.?0
telePhones
(g) Attachments for
,l rf
*'r
*rr