THE KERALA VALUE ADDED TAX ACT, 2003 - NOTIFICATION
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Body Notification No. 5959/Leg.A2/2015/Law Dated 29th July, 2015

The following Act of the Kerala State Legislature is hereby published for general information. The Bill as passed by the Legislative Assembly received the assent of the Governor of Kerala on the 29th day of July, 2015.

By order of the Governor,

S. KUMARI SUDHA,

Special Secretary (Law).

EXTRACT OF THE KERALA FINANCE ACT, 2015

ACT No. 11 Of 2015

An Act to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2015-2016.

Preamble.- Whereas, it is expedient to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2015-2016;

Be it enacted in the Sixty-sixth Year of the Republic of India as follows:-

1. Short title.-

(1) This Act may be called the Kerala Finance Act, 2015.

(2) Save as otherwise provided in this Act,-

(i) clause (b) of sub-section (1), clause (b) of sub-section (2), sub-clauses (vii) and (xii) of clause (a) of sub-section (19) and sub-clause (i) of clause (d) of sub-section (19) of section 9 shall be deemed to have come into force on the 1st day of April, 2005.

(ii) sub-section (18) and sub-clause (iv) of clause (c) of subsection (19) of section 9 shall be deemed to have come into force on the 19th day of July, 2011.

(iii) clause (a) of sub-section (2) of section 4 and item (c) of sub-clause (v) of clause (a) of sub-section (19) of section 9 shall come into force at once.

(iv) the remaining provisions of this Act shall be deemed to have come into force on the 1st day of April, 2015.

9. Amendment of Act 30 of 2004.-

In the Kerala Value Added Tax Act, 2003 (30 of 2004),-

(1) in section 2,

(a) after clause (xxvii), the following clauses shall be inserted, namely:-

"(xxviiA) "multi-level marketing" means marketing and sale of goods of a multi-level marketing entity through direct sellers or through direct sellers and distributors, otherwise than through shops, to the customers or consumers, generally in their houses or at their workplace or through demonstration of such goods at a particular place or by mail order sale;

(xxviiB) "multi-level marketing entity" means a company registered under the Companies Act, 2013 (Central Act 18 of 2013) or any partnership firm registered under the Partnership Act, 1932 (Central Act IX of 1932) or under the Limited Liability Partnership Act, 2008 (Central Act 6 of 2009) engaged in multi-level marketing;";

(b) in clause (Ii), the following Explanation shall be inserted, namely:-

"Explanation:- Notwithstanding anything contained in any judgment, decree or order of any court or tribunal or any authority, the balance of contract amount received or receivable by a principal contractor in his account, after deducting the amount paid to registered sub-contractors in accordance with the rules prescribed in this behalf, shall form the total turnover of the principal contractor for determining the balance transfer value of the materials involved in the execution of such works contract.";

(2) in section 6,-

(a) in sub-section (1),

(i) after the words "any autonomous body" the words "or any multi-level marketing entity, their distributor and/or agent engaged in multi-level marketing" shall be inserted;

(ii) in clause (a), in the Table,

(a) in serial number 3A, in the entry in column (2), the following words shall be added at the end, namely:-

"including styrofoam and styrofoam sheets";

(b) after serial number 3A and the entries against it in columns (2), (3) and (4), the following serial number and entries shall, respectively, be inserted, namely:-

"3B.

Printed banners, hoardings and leaflets of Poly Vinyl Chloride/ Polyethylene and other plastic sheets

***

20.";

(iii) for the eleventh proviso, the following proviso shall be substituted, namely:-

"Provided that the turnover relating to the sale of Liquified Natural Gas shall be exempted from tax, for the period from 1st April, 2015 to 31st March, 2016.";

(b) in sub-section (5), in Explanation II, the following Note shall be inserted, namely:-

"Note.- It shall be deemed to have come into force on the 1st day of April, 2005.";

(3) section 6A shall be omitted;

(4) in section 8,-

(a) in clause (a), in sub-clause (i),-

(i) after the words "any works contractor", the words and brackets "other than those who undertake interior decoration and furnishing contracts, electrical, refrigeration or air conditioning contracts or contracts relating to supply and installation of plant, machinery, rolling shutters, cranes, hoists, elevators (lifts), escalators, generators, generating sets, transformers, weighing machines, air conditioners and air coolers, deep freezers, laying of all kinds of tiles (except brick tiles), slabs and stones (including marble)" shall be inserted; (ii) after Explanation 2, the following Explanation shall be inserted, namely:-

"Explanation 3:- A composite contract for the construction of building shall not be treated as a contract of the nature specified under this sub-clause merely for the reason that the contract also involves works which are excluded from the said sub-clause.";

(b) in clause (c), to sub-clause (i), the following proviso shall be inserted, namely:-

"Provided that notwithstanding anything contained in this Act or rules made thereunder , a dealer may opt to pay tax under this sub-clause, subject to eligibility, for the periods prior to 2015-16 whether such dealer has registered under this Act or not .";

"(i) any dealer who is a multi-level marketing entity may, at his option, pay, in such manner and subject to such conditions and restrictions as may be prescribed, in lieu of the tax payable by him on such goods under sub-section (1) of section 6, the tax at the schedule rate applicable to goods, of the maximum retail price of such goods:

Provided that the provision of this clause shall not apply to such goods sold by muti-level marketing entities otherwise than by way of multi-level marketing:

Provided further that notwithstanding anything contained in section 6 and section 15, if multi-level marketing entities pay tax on maximum retail price under this provision, subsequent dealers in the chain shall not be liable to take registration and shall be exempted from payment of tax-on such goods.".

(5) in section 10, in sub-section (1), in the proviso, for the words four per cent" the words "five per cent" shall be substituted;

(6) in section 15, in sub-section (2), after item (xi), the following items shall be inserted, namely:-

"(xii) any multi-level marketing entity, their distributor and/or agent engaged in multi-level marketing;

(xiii) any job-worker receiving goods from outside the State for job-works.";

(7) in section 16, in sub-section (7), for items (a) and (b), the following items shall, respectively, be substituted, namely:-

"(a) in the case of a dealer who is not an importer,
(i) having a total turnover of up to rupees twenty five lakh in the previous year	Five hundred rupees
(ii) having a total turnover of above twenty five lakh rupees in the previous year	One thousand rupees
(b) in the case of others	Three thousand rupees.";

(8) in section 18C, in sub-section (1),-

(a) in clause (a), for the words, brackets and figures "orders of exemption applicable to charitable institutions under the Income Tax Act, 1961 (Central Act 43 of 1961)" the words, brackets and figures "the registration of such institutions under section 12AA of the Income Tax Act, 1961 (Central Act 43 of 1961)" shall be substituted;

(b) in the first proviso, for the words "orders of income tax exemption:" the words, brackets and figures "registration of such institutions under section 12AA under the Income Tax Act, 1961 (Central Act 43 of 1961)" shall be substituted.

Note:- Item (a) and (b) shall be deemed to have come into force on the 1st day of April, 2014.";

(9) in section 21, the existing provision shall be numbered as sub-section (1), and after sub-section (1) so numbered the following sub-section shall be inserted, namely:

"(2) Where the dealer detects any omission or mistake in the monthly return submitted under sub-section (1), he shall file a revised return rectifying the mistake or omission within two months from the last day of the return period to which the return relates. As a result of such revised return, if the tax payable by the dealer increases, the dealer shall furnish along with such revised return, proof of payment of tax, interest due thereon at the rates specified in section 31 and penal interest calculated at twice the said rate. Subject to the provisions of sections 22, 24 and 25, the assessment relating to the return period shall be deemed to have been completed on the receipt of such revised return.";

(10) in section 24, in sub-section (1), for the fourth proviso, the following proviso shall be substituted, namely:-

"Provided also that the period for the completion of assessments including those subjected to extension under section 25B which expires on 31st March, 2015 shall be extended up to 31st March, 2016.";

(11) in section 25, in sub-section (1), for the third proviso, the following proviso shall be substituted, namely: -

"Provided also that the period for the completion of assessments including those subjected to extension under section 25B which expires on 31st March, 2015, shall be extended up to 31st March, 2016.";

(12) in section 30, the proviso to sub-section (1) shall be omitted;

(13) in section 52, the following sentence shall be added at the end, namely:-

"For this purpose such agencies or authorities shall take registration following such procedure as may be prescribed.";

(14) in section 54,

(a) after the words "any proceedings" the words "or for the purpose of general inquiry or survey" shall be inserted;

(b) the following proviso shall be inserted, namely:-

"Provided that in the case of general inquiry or survey the power shall be exercised only with the prior approval of an officer of and above the rank of Deputy Commissioner".;

(15) after section 54, the following section shall be inserted, namely:-

"54A. Entities engaged in electronic commerce to furnish certain details.-

All companies and entities maintaining an electronic commerce website shall file monthly, the details of goods sold through such sites in such form as may be prescribed, which are transported into or outside the State as a result of such sale. For this purpose they shall take registration under this Act, in such manner as may be prescribed.";

(16) in section 58, in sub-section (1), the words, figures, and brackets "sub-section (8) or sub-section (9) of section 44, section 49, section 67, section 68, section 69 or section 70" shall be omitted;

(17) in section 82,-

(a) after the words "assessing authority", the words "may collect information through general inquiry or survey and for that purpose" shall be inserted;

(b) the following proviso shall be inserted, namely:-

"Provided that in the case of general inquiry or survey the power shall be exercised only with the prior approval of an officer of and above the rank of Deputy Commissioner";

(18) in section 94, in sub-section (2A), after the words "entire tax due" the words "with interest thereon till the date of such payment", shall be inserted;

(19) in the Schedules,-

(a) in the First Schedule,-

(i) in serial number 3, in the heading, the words 'poultry feed' shall be omitted;

(ii) serial number 4A and the entries against it in columns (2) and (3) shall be omitted;

(iii) in serial number 7, in the entry against it in column (2), the words "other than those specifically mentioned in the Third Schedule" shall be added at the end;

(iv) for serial number 17A and the entries against it in columns (2) and (3), the following serial number and entries shall, respectively, be substituted, namely:-

"17A.

Fabricated wall panels made of glass fibre reinforced gypsum

***"-

(v) in serial number 18,-

(a) item (4) and the entries against it in columns (2) and (3) shall be omitted;

(b) for item (5) and the entries against it in columns (2) and (3), the following item and entries shall, respectively, be substituted, namely;-

"(5).

Nylon ropes, polyester ropes and polyester twines sold by Matsyafed, Theeramythri units approved by Government and Fishermen Co-operative Societies.

***"-

(vi) serial number 23A and the entries against it in columns (2) and (3) shall be omitted;

(vii) in serial number 24B, the following Note shall be inserted, namely:-

"Note:- This entry shall be deemed to have come into force on the 1st day of April, 2005.";

(viii) after serial number 39 and the entries against it in columns (2) and (3), the following serial numbers and entries shall, respectively, be inserted, namely;-

" 39A	Plastic recycling plant and machinery	***
39B.	Pyrolysis oil obtained from recycling of plastics, at the point of sale by such recycling units	***"

(ix) after serial number 42B and the entries against it in columns (2) and (3), the following serial number and entries shall respectively, be inserted, namely:-

"42C

Rubber wood

***"-

(x) serial number 46A and the entries against it in columns (2) and (3) shall be omitted;

(xi) serial number 51 and the entries against it in columns (2) and (3) shall be omitted;

(xii) in serial number 55, in the heading in column (2), the words "and Khadi and Village Industries Commission", shall be added at the end;

(xiii) after serial number 62 and the entries against it in columns (2) and (3), the following serial number and entries shall, respectively, be inserted, namely:-

"63.

Used plastic and electronic waste

***"-

(b) in the Second Schedule -

(i) in serial number 1,-

(a) for item (2) and the entries against it in columns (2) and (3), the following item and entries shall respectively be substituted, namely:-

" (2) Gold bullion, sold by agencies notified by Director General of Foreign Trade and those authorised by Reserve Bank of India for import of gold into the country, at the point of sate within the State.";

***"-

(b) items (7) to (12) and the entries against them in columns (2) and (3) shall be omitted;

(ii) after serial number 6 and the entries against it in columns (2) and (3), the following serial numbers and entries shall, respectively, be inserted, namely;-

"7A.	"Embroidery or Zari articles, that is to say, imi, zari, kasab, saima, dabka, chumki, gota, sitara, naqsi, kora, glass bead, badial
	(1) Embroidery without visible groud	5810.10.00
	(2) Other embroidery of cotton	5810.91.00
	(3) Embroidery or man-made fibres
	(a) Embroidered badges motifs and the like	5810.92.10
	(b) Other embroidered articles	5810.92.90
	(4) Embroidery of other textile materials	5810.99.00
	(5) Zari articles	***"
8	Handloom cloth, Handloom Bedsheet and pillow cover	***
9.	Silk fabrics and sarees made of natural silk	5007
10	Textiles fabric
	(1) Wool
	(a) Woven fabrics of carded wool or of carded fine animal hair	5111
	(b) Woven fabrics of combed wool or of combed fine animal hair	5112
	(c) Woven fabrics of coarse animal hair or of horse hair.	5113
	(2) Cotton
	(a) Woven fabrics of cotton containing 85% or more by weight of cotton weighing not more than 200 gm/m2	5208
	(b) Woven fabrics of cotton containing 85% or more by weight of cotton weighing more than 200 gm/m2	5209
	(c) Woven fabrics of cotton containing less than 85% by weight of cotton, mixed mainly or solely with man-made fibres, weighing not more than 200 gm/m2	5210
	(d) Woven fabrics of cotton containing less than 85% by weight of cotton, mixed mainly or solely with man-made Fibres, weighing more than 200 gm/m2	5211
	(e) Other woven fabrics of cotton.	5212
	(3) Woven fabrics of Flax	5309
	(4) Woven fabrics of jute or of other textile base fibres	5310
	(5) Woven fabrics of other vegetable textile fibres; woven fabrics of paper yarn	5311
	(6) Man-made filaments
	(a) Woven fabrics of synthetic filament yarn, including woven fabrics obtained from materials of HSN heading 5404	5407
	(b) Woven fabrics of artificial filament yarn, including woven fabrics obtained from materials of HSN heading 5405.	5408
	(7) Man-made Staple Fibres
	(a) Woven fabrics of synthetic staple fibres, containing 85% or more by weight of synthetic staple fibres	5512
	(b) Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight not exceeding 170m2	5513
	(c) Woven fabrics of synthetic staple fibres, containing less than 85% by weight of such fibres, mixed mainly or solely with cotton, of a weight exceeding 170 m2	5514
	(d) Other woven fabrics of synthetic staple fibres	5515
	(e) Woven fabrics of artificial staple fibres.	5516
	(8) Special Woven fabrics; Tufted textile fabrics; Lace, Tapestries, Trimmings; Embroidery
	(a) Woven pile fabrics and chennile fabrics other than HSN heading nos. 5802 or 5806	5801
	(b) Terry toweling and similar woven terry fabrics other than narrow fabrics of HSN heading nos. 5806; tufted textile fabrics other than HSN heading no. 5703	5802
	(c) Gauze other than narrow fabrics of HSN heading no. 5806	5803
	(d) Tullies and other net fabrics not including woven, knitted or crocheted fabrics, lace in the piece, in strips or in motifs, other than fabrics of HSN heading nos. 6002 to 6006	5804
	(e) Hand woven tapestries of the type gobelins, flanders, aubusson, beauvals and the like and needle worked tapestries (for example petit point, cross stitch), whether or not made-up	5805
	(f) Narrow woven fabrics other than goods HSN heading no. 5807; narrow fabrics consisting warp without weft assembled by means of an adhesive (bolducs).	5806
	(g) Woven fabrics of metal thread and woven fabrics of metalized yarn of HSN beading no. 5605 of a kind used in apparel as furnishing fabrics of a similar purpose, not elsewhere specified or included.	5809
	(9) Textiles fabrics coated with gum or amylaceous substances, of a kind used for the outer covers of the books or the like; Tracing cloth; Prepared painting canvas; Buckram and similar stiffened textile fabrics of a kind used for hat foundations	5901
	(10) Tyre cord fabric of high tenacity yarn or other polymers, polyesters or viscose rayon	5902
	(11) Textile wall coverings	5905
	(12) Rubberised textile fabrics, other than tyre cord fabrics of high tenacity yarn or nylon or other polyamides polyesters or viscose rayon	5906
	(13) Textile fabrics, otherwise impregnated, coated or covered; painted canvas being theatrical scenery, studio back-cloths or the like	5907
	(14) Knitted or chrocheted fabrics
	(a) Pile fabrics, including 'long pile' fabrics and terry fabrics, knitted or chrocheted	6001
	(b) Knitted or chrocheted fabrics of a width not exceeding 30 cm., containing by weight 5% or more of elasto mcric yarn of rubber thread, other than those of HSN heading no. 6001	6002
	(c) Knitted or chrocheted fabrics of a width not exceeding 30 cm., other than those of HSN heading nos. 6001 or 6002	6003
	(d) Knitted or chrocheted fabrics of a width exceeding 30 cm., containing by weight 5% or more of elasto meric yarn of rubber thread, other than those of HSN heading no. 6001	6004
	(e) Wrap knit fabrics (including those made on gallon knitting machines), other than those of HSN heading nos. 6001 to 6004	6005
	(e) Other knitted or chrocheted fabrics.	6006
11	Prepared poultry feed	***":

(c) in the Third Schedule,-

(i) after serial number 18 and the entries against it in columns (2) and (3), the following serial number and entries shall, respectively, be inserted, namely: -

"18A.

Brooms, brushes and mops made of plastic used for floor cleaning and toilet cleaning

***"-

(ii) in serial number 51A, after item (8) and the entries against it in columns (2) and (3), the following items and entries shall respectively, be inserted, namely:-

(9)	Articles of 'goldsmiths' or 'silversmiths' wares and parts thereof of precious metals or of metal clad with precious metal	7114
(10)	Other articles of precious metal or of metal clad with precious metals	7115
(11)	Silver, semi-manufactured	7106.92
(12)	Gold, semi manufactured	7108.13.00
(13)	Waste and scrap of precious metals	7112
(14)	Gold coins	***
(15)	Gold bullion other than those specified in Second Schedule	***",

(iii) after serial number 92 and the entries against it in columns (2) and (3), the following serial number and entries shall, respectively, be inserted, namely:-

"92A.

Nylon Rope not included in the first Schedule

***"-

(iv) in serial number 97 A, the following Note shall be inserted, namely:-

"Note, -This entry shall be deemed to have come into force on the 19th day of July, 2011.";

(v) after serial number 99 and the entries against it in columns (2) and (3), the following serial number and entries shall, respectively, be inserted, namely:-

"99A.

Polyester rope and Polyester twine not included in the first Schedule.

***"-

(vi) in serial number 100, in the heading, the words "but excluding those mentioned in serial number 3B of the table in clause (a) of subsection (1) of section 6" shall be added at the end;

(vii) for serial number 130 and the entries against it in columns (2) and (3) the following serial number and entries shall, respectively, be substituted, namely:-

"130.

Toys excluding electronic and plastic toys

***"-

(viii) after serial number 146 and the entries against it in columns (2) and (3), the following serial number and entries shall, respectively, be inserted, namely:-

"147.

Electronic goods and systems for defence purposes notified by the Government, and manufactured by units situated in the State

***"-

(d) in List A,-

(i) in serial number 84A, the following Note shall be inserted, namely:-

"Note.- This entry shall be deemed to have come into force on the 1st day of April, 2005 ";

(ii) serial number 136A and the entries against it in columns (2) and (3) shall be omitted.