In exercise of the powers conferred by section 92 of the Kerala Value Added Tax Act, 2003 (30 of 2004), the Government of Kerala hereby makes the following rules further to amend the Kerala Value Added Tax Rules, 2005 issued by notification under G. O. (P) No. 42/2005/TD dated 31st March, 2005 and published as S. R. O. No. 315/2005 in the Kerala Gazette Extraordinary No. 675 dated 31st March, 2005, namely:-

1. Short title and commencement.-

(1) These rules may be called the Kerala Value Added Tax (Amendment) Rules, 2014.

(2) They shall come into force at once.

2. Amendment of the Rules-

In the Kerala Value Added Tax Rules. 2005,

(1) in rule 12-C, after sub-rule (4) , the following sub-rule shall be inserted, namely:-

(4A) Every dealer who makes any sale of furnace oil as fuel to coastal Cargo Vessels registered under the Merchant Shipping Act, 1958 either directly or through agents holding valid license issued by the Director General of shipping Government of India, under the sixteenth proviso to sub-section (1) of section 6 shall submit,-

(i) a declaration and undertaking in Form No.47A;

(ii) copy of the marine delivery receipt or bunker delivery note issued by oil company or their agents holding valid license issued by the Director General of shipping Government of India, for the supply of bunker showing the name and quantity of the fuel supplied, the date, time and place of supply, along with the name and address of the ship's agent, the invoice number and date, duly signed and sealed by the Master or Chief Engineer of the ship acknowledging the supply and attested by the authorized signatory of the supplier;

(iii) copy of bill for coastal goods;

(iv) copy of the invoice;

(v) Copy of Certificate of Registry under the Merchant Shipping Act, 1958 and the rules made thereunder;

(vi) Copy of Port clearance Certificate under the Merchant Shipping Act, 1958 and the rules made thereunder.

(2) In the forms, after Form No. 47, the following shall be inserted, namely:-

FORM No.47A

DECLARATION

[For concessional rate of tax on sale of furnace oil to coastal Cargo Vessels under-sixteenth proviso to sub-section (1) of section 6.]

[See rule 12C]

This is to certify that I / We ........................................ (name and full address of the purchaser directly/through agent with identification number, if any, with TIN) have Purchased the goods described below from M/s. .......................................... (full address of the seller with TIN during the month /financial year ........................ which are exclusively intended to use by the .......................... (name and address of the purchaser ) in the Coastal Cargo Vessel.

I am fully convinced of the fact that the purchaser of these goods is eligible for the concessional rate of tax as prescribed under the sixth proviso to sub-section (1) of section 6. In the event it is found otherwise or it has not been used for the purposes mentioned.

We also hereby undertake to pay over to the Government the tax concession availed by us in the event of failure to utilize the goods for the purpose declared

Particulars of goods Purchased

By order of the Governor,

A. Ajith Kumar,

Secretary to Government.

Explanatory Note

(This does not form part of the notification, but is intended to indicate its general purport.)

As per the Sixteenth proviso to sub-section (1) of Section 6 of the Kerala Value added tax Act, 2003 (30 of 2004), inserted by the Kerala Finance Bill, 2014, the rate of tax for the sale of furnace oil to coastal Cargo Vessels as fuel has been reduced to 5 per cent, subject to such conditions and restrictions as may be prescribed. The Government has decided to prescribe the conditions and restrictions for the tax rebate and this has necessitated the amendment on the Kerala Value Added Tax Rules, 2005.

The notification is intended to achieve the above object.