EXTRACT OF THE KARNATAKA TAXATION LAWS (AMENDMENT) ACT, 2006
Karnataka Act No. 5 of 2006
(Received the assent of the Governor on the Thirty First day of March, 2006)
An Act further to amend certain taxation laws in force in the State of Karnataka.
Whereas it is expedient further to amend certain taxation laws for the purposes hereinafter appearing;
Be it enacted by the Karnataka State Legislature in the fifty-seventh year of the Republic of India, as follows.-
1. Short title and commencement.-
(1) This Act may be called the Karnataka Taxation Laws (Amendment) Act, 2006.
(2) It shall come into force with effect from the first day of April, 2006.
4. Amendment of Karnataka Act 25 of 1957.- In the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957),-
(1) in section 5-A,-
(i) after Explanation II, the following explanation shall be deemed to have been inserted with effect from the first day of April, 1983, and shall be deemed to have been omitted with effect from the first day of April, 2001, namely:-
"Explanation III.- For the purpose of this section, the expression "manufacture" shall include the process of obtaining student note books and exercise books from paper.";
(ii) after Explanation I, the following explanation shall be deemed to have been inserted with effect from the first day of April, 2001 and shall be deemed to have been omitted with effect from the first day of April, 2002, namely:-
"Explanation II.- For the purpose of this section, the expression "manufacture" shall include the process of obtaining student note books and exercise books from paper." ;
(iii) in the explanation, after clause (4), the following clause shall be deemed to have been inserted with effect from the first day of April, 2002, and shall be deemed to have been omitted with effect from the sixteenth day of November, 2004, namely:-
"(5) For the purpose of this section, the expression "manufacture" shall include the process of obtaining student note books and exercise books from paper."
(2) in section 12, after sub-section (1), the following proviso shall be and shall be deemed to have been inserted with effect from the first day of April, 2005, namely:-
"Provided that nothing contained in this sub-section shall apply to a dealer who is registered under the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004) and who is not a dealer in petrol, diesel, aviation turbine fuel, lottery tickets and sugarcane.";
(3) in section 12-B, in sub-section (1), after the third proviso, the following shall be and shall be deemed to have been inserted with effect from the first day of April, 2005, namely:-
"Provided also that nothing contained in this sub-section shall apply to a dealer who is registered under the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004) and who is not a dealer in petrol, diesel, aviation turbine fuel, lottery tickets and sugarcane.";
(4) in section 22, for the words "empowered by the State Government " wherever they occur, the words "empowered by the State Government or the Commissioner" shall be substituted.
6. Amendment of Act 35 of 1976.-
In the Karnataka Tax on Professions Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976),-
(1) in section 10,-
(i) in the heading, after the words " enrolled persons" the words "and deduction of tax in the case of certain enrolled persons " shall be inserted;
(ii) after sub-section (2), the following shall be inserted, namely:-
"(3) Notwithstanding anything contained in sub-sections (1) and (2), the tax payable under this Act by any agent or any other person by whatever name called earning income by way of commission or other remuneration as specified in item 4 of the Schedule, shall be deducted by the insurance company or bank or other financial institution before such commission or other remuneration is paid to him, and such insurance company or bank or other financial institution shall, irrespective of whether such deduction has been made or not when the commission or other remuneration is paid to such personal shall be liable to pay tax on behalf of all such persons.
(4) The deduction under sub-section (3) shall be made in the month in which the commission or other remuneration payable for any year exceeds thirty six thousand rupees.
(5) The insurance company or bank or other financial institution making deduction under sub-section (3) shall send every month to the jurisdictional assessing authority a statement in the prescribed form containing particulars of tax deducted during the preceding month and pay full amount of the tax so deducted by it within twenty days after the close of the preceding month in which such deduction was made and the amount so payable shall for the purposes of section 13 be deem to be an amount due under this Act.
(6) If default is committed in the payment of tax deducted beyond ten days after the period specified under sub-section (5), the insurance company or bank or other financial institution shall be liable to pay interest at 2% of the amount of tax due for each month or part thereof for a period for which the tax remains unpaid.
(7) The insurance company, or bank or other financial institution making deduction under sub-section (3), shall furnish to the enrolled person or person liable to be enrolled from whom such deduction is made, a certificate obtained from the jurisdictional assessing authority containing such particulars as may be prescribed.
(8) Payment by way of deduction in accordance with sub-section (5), shall be without prejudice to any mode of recovery of tax due under this Act from the enrolled person or person liable to be enrolled and the burden of proving that the tax payable by him has already been deducted and remitted under sub-section (5) shall be on such person.";
(2) for section 13, the following shall be substituted, namely:-
"13. Recovery of tax and other amounts and period of limitation for recovery of tax:
(1) Any tax due or assessed, or any other amount due under this Act from an employer or any other person may, without prejudice to any other mode of collection, be recovered,-
(a) as if it were an arrears of land revenue; or
(b) by attachment and sale or by sale without attachment of any property of such employer or any other person by the prescribed authority or the prescribed officer in the prescribed manner, and any prescribed certificate issued towards such sale shall be deemed to be a decree of a Civil Court and shall be executed in the same manner as a decree of such Court; or
(c) on application to any Magistrate, by such Magistrate as if it were a fine imposed by him.
(2) Notwithstanding anything contained in any law for the time being in force, no proceedings for the recovery of any amount under this Act shall be initiated after the expiry of five years from the end of the relevant year or from the date of the relevant assessment:
Provided that when an appeal or application for revision has been filed, the period of limitation shall run from the date on which the amount due is finally determined.
(3) The period of limitation specified under sub-section (2) shall not apply to any case in which, during the course of recovery proceedings initiated under any clause of sub-section (1) or under section 20, any other fresh proceedings are initiated or the employer has deducted any amount by way of tax or purporting to be by way of tax.";
(3) in the Schedule,-
(i) in the entries relating to serial number 20, in column (2), for the words and brackets "Holders of permits of transport vehicles(other than autorickshaws) granted", the words and brackets "Owners of transport vehicles(other than auto rickshaws) run on their own or through others under permits granted" shall be substituted;
(ii) the entries relating to serial number 65 shall be omitted.
8. Amendment of Karnataka Act 27 of 1979.-
In the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979),-
(1) in section 4BB, in sub-section (3) , the words "in that State" shall be and shall always be deemed to have been omitted;
(2) in section 14, in sub-section (1), for the words "empowered by the State Government" wherever they occur, the words "empowered by the State Government or the Commissioner" shall be substituted.
By Order and in the name of the Governor of Karnataka