Notwithstanding anything contained in section 6,-
(a) any works contractor who imports any goods into the State from other States or Country for incorporation in the works contracts and or who is registered under the provisions of the Central Sales Tax Act, 1956 (Central Act 74 of 1956), may at his option, instead of paying tax in accordance with the provisions of section 6, pay tax at the rate of seven per cent of the whole contract amount for all works contracts undertaken by him except works contracts of 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 or lifts, escalators, generators, generating sets, transformers, weighing machines, air conditioners and air coolers, deep freezers, laying of all kinds of tiles other than brick tiles, slabs and stones including marble:
Provided that the compounded tax payable under this sub-clause by such works contractor in respect of works contract awarded by Government of Kerala, Kerala Water Authority or Local Authorities shall be five per cent of the whole contract amount:
(ii) any works contractor not falling under the description in clause (i) above may, at his option, instead of paying tax in accordance with the provisions of the said section, shall pay tax at the rate of four per cent of the whole contract amount:
Provided that the provisions of this clause shall not apply to any works contract in which the transfer of material is in the form of goods:
Provided further that a contractor who intends to pay tax at compounded rate in accordance with this clause in respect of all works awarded by Government of Kerala, Kerala Water Authority or Local Authorities undertaken by him during an year, may, instead of filing separate application for compounding for such individual works, file a single option for payment of tax under this clause for such works before 30th day of April of the year to which the option relates, subject to eligibility:
Provided also that in the case of any work compounded under this clause, and which remains unexecuted fully or partly as on 31st March, 2014, the contractor may continue to pay tax in respect of such works in accordance with the provisions of this clause as existed when he had opted for compounding up to 31st March, 2015 and with respect to works contract awarded by Government of Kerala, Kerala Water Authority or Local Authorities up to 31st March, 2016.
Provided also that subject to eligibility, a work once compounded under this clause, shall remain compounded till the completion of such work.
Explanation I- For the purpose of this clause "whole contract amount" shall not include the amount paid to sub-contractors for execution of the portion of works contracted if the sub-contractor is a registered dealer liable to pay tax under sub-section (1) or sub-section (1A) of section 6, and the contractor claiming deduction in respect of such amount furnishes certificates in such form as may be prescribed.
Explanation 2.- Notwithstanding anything contained in any other Act, a dealer surrenders his registration and unused declaration forms under the Central Sales Tax Act, 1956 (Central Act 74 of 1956), before the assessing authority on or before 31st March of an year (including 31st March 2014) and who does not have any closing stock of materials purchased interstate as on that date or who pays tax on such closing stock at scheduled rates, shall be eligible for paying compounded tax under sub-clause (ii) of this clause, for the next year.;
Explanation 3:- A composite contract for the construction of building shall not be treated as a contract of the nature specified under sub-clause (i) merely for the reason that the contract also involves works which are excluded from the said sub-clause.
(b) Any dealer producing granite metals and/or manufactured sand with the aid of mechanised machines may, at his option, instead of paying tax in accordance with the provisions of the said sections, pay tax at the following rates, namely:-
Explanation:For the purpose of this clause, primary crushers falling under the description of item (i), (ii) or (iii) above, shall also be reckoned for the purpose of computation of compounded tax, and the rate applicable to primary crushers shall be at fifty per cent of the aggregate of the tax payable on secondary crushers:
Provided that notwithstanding anything contained in this clause, dealers with a single crushing machine of size not exceeding 30.48 cm. x 22.86 cm. shall pay rupees thirty thousand only per annum and those with a single crushing machine of size above 30.48 cm. x 22.86 cm. but not exceeding 40.64 cm. x 25.40 cm. shall pay rupees one lakh twenty thousand only per annum as tax under this clause:
Provided further that notwithstanding anything contained in this clause, dealers having Vertical/Horizontal Shaft Impactor machines or similar machines along with jaw crushers/cone crushers shall pay only sixty per cent of the relevant rate of compounded tax for each of such Vertical/Horizontal Shaft Impactor machines or similar machines, in addition to the tax on crushing machines, as compounded tax under this clause:
Provided also that the compounded tax payable shall be determined for an year and shall be payable in 12 equal monthly instalments.
(c ) (i) any dealer in cooked food and beverages, including fresh fruit juices and sweets prepared by him, other than,-
(a) a dealer supplying cooked food or beverages to any airline service company or institution or shipping company for serving in aircraft, ships or steamer or served in aircraft, ship, steamer;
(b) a bar attached hotel or a dealer for serving cooked food in a bar attached hotel;
(c) a star hotel or a dealer serving cooked food in a star hotel;
(d) a dealer making interstate purchase of goods, other than capital goods or packing materials; or
(e) hotels or restaurants using a brand name or a trade mark registered under the Trade Marks Act, 1999 (Central Act 47 of 1999);
may, at his option, instead of paying tax in accordance with the provisions of sub-section (1) of section 6 but subject to payment of tax, if any, payable under sub-section (2) thereof, pay tax at half per cent of the turnover of cooked food and beverages prepared by him and also on the turnover of other goods in respect of which he is not the dealer effecting first taxable sale, as provided in the Explanation under sub-section (5) of section 6.
Explanation:-Cooked food for the purpose of this clause shall include sweets and fresh fruit juice prepared and served in the restaurants and hotels.
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 .
(ii) Any bar attached hotel, not being a star hotel of and above three star or a club or a heritage hotel may, at its option, instead of paying tax in accordance with the provisions of section 6, but subject to such conditions and restrictions as may be prescribed, pay tax at one hundred and twenty five per cent of the tax paid or payable under this Act, in respect of the highest turnover of cooked food and beverages prepared by them, and packaged water, aerated water, cigarettes, soft drinks and other goods purchased from registered dealers, for the previous three consecutive years, immediately preceding the year to which the option relates.
Provided that the dealers who have paid compounded tax during the previous year shall pay tax at one hundred and fifteen percent of the compounded tax paid and one hundred and fifteen per cent of the tax paid on packaged water, aerated water, cigarettes and soft drinks purchased from registered dealers.
Provided further that, where a dealer had paid tax under this sub-clause for the previous year, the tax payable for the succeeding year under this clause shall be one hundred and fifteen per cent of such tax paid during the previous year.
Explanation - For the purposes of this clause "bar attached hotel" shall mean a hotel or restaurant or club or any other place, which is licensed under the Foreign Liquor Rules to serve foreign liquor falling under Serial Number 2 of the Fourth Schedule, but shall not include any hotel or restaurant, not being a star hotel, which is licensed to serve only beer.
(d) Any dealer who transfers the right to use Video Cassette or Compact Disc may, instead of paying tax in accordance with the provisions of section 6, pay tax at the rate of one thousand rupees per year for every main or branch shop situated in any place within the limits of any Municipal Corporation or Municipality and rupees five hundred per year for any main or branch shop situated in any other place or places.
(e) Any dealer, who is an importer or a manufacturer who is not entitled to any deferment of tax under section 32, of medicines and drugs falling under the Third schedule 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, tax at the rate of 5 percent of the maximum retail price of such goods.
Explanation: For the purpose of this clause, maximum retail price in respect of the goods mentioned means the maximum price printed on the package of any goods at which such goods may be sold to the ultimate consumer and in respect of supplies to Government of Kerala, where such price is not so printed on the package, the price charged on the sales to Government. This Explanation shall have effect on and from the 1st day of April, 2005. :
Provided that where a registered dealer has purchased any goods,-
(a) from an importer or a manufacturer who has opted far payment of tax under this clause; or
(b) from another registered dealer where the tax on the maximum retail price of such goods was paid in the state on an earlier sale,
such dealer shall, notwithstanding anything contained elsewhere in the Act, but subject to such conditions and restrictions as may be prescribed, be exempt from payment of tax under sub-section (1) of section 6 in respect of the sale of such goods and be entitled to recover from the buyers the amount of tax paid by him at the time of purchase of such goods and the turnover of such goods shall not be included in the total turnover for the purpose of sub-section (5) of section 6 where the dealer opts for payment of tax in accordance with the said sub-section in respect of goods other than medicines and drugs.
Provided further that a dealer who opts payment of tax under this clause shall not allow any trade discount or incentive in terms of quantity of goods in relation to any sale of goods covered under the clause, effected by him, for the purpose of calculating his tax liability.
(f) (i) any dealer in bullion or ornaments or wares or articles of gold, silver or platinum group metals including diamond may at his option, instead of paying tax on their sale in the State in respect of such goods in accordance with the provisions of section 6, may pay tax at,-
(a) one hundred and fifteen per cent, in case the total turnover of the dealer opting to pay tax under this clause, for the preceding year was rupees ten lakhs or below;
(b) one hundred and twenty per cent, in case the total turnover of the dealer opting to pay tax under this clause, for the preceding year was above rupees ten lakhs and up to rupees forty lakhs;
(c) one hundred and thirty five per cent, in case the total turnover of the dealer opting to pay tax under this clause, for the preceding year was above rupees forty lakhs and up to rupees one crore;
(d) one hundred and fifty per cent, in case the total turnover of the dealer opting to pay tax under this clause, for the preceding year was above rupees one crore and above;
of the highest tax payable by him as conceded in the return or accounts, or tax paid by him under this Act, whichever is higher, for an year during any of the three consecutive years preceding that to which such option relates.
Explanation 1.- A dealer shall not be allowed to opt for the payment of tax under this clause unless he has conducted business up to a full year as on the first day of April of the year to which the option relates. Where a dealer had not transacted any business for the last three years consecutively, the highest tax paid or payable for the year during the year or years he transacted business shall be considered for the above purpose and where during any such preceding year, the dealer had not transacted business for any period in that financial year, the tax payable for the twelve months shall be calculated proportionately on the basis of the tax payable or the total turnover conceded, as applicable, for the period during which such dealer had transacted business.
Explanation 2.- Dealers opting for payment of tax under this clause shall pay compounded tax in respect of all their branches existing in the year to which the option relates, except the newly started branch or branches started during the year under option. Such branch or branches will be treated as a separate place of business for the purpose of this clause, for that year.
Provided that this explanation shall not be applicable to dealers who had paid compounded tax in respect of their branches started in the year 2013-2014 on the basis of average tax paid for the principal place of business and other branches for the year 2014-2015.
Explanation 3.- Where a dealer paying tax under this clause, closes a branch during the year under option, proportionate reduction considering the number of business places, in the payment shall be granted in the next monthly instalment onwards, for the remaining months of the 'year.
Explanation 4.- Where a dealer is opting for payment of tax under this clause for the first time and had only business in the previous year and the tax payable as per return or accounts during such previous year is less than the output tax payable, then the tax payable for the year under option shall be notionally re-determined on the basis of output tax, for determining the tax liability for the year under option.
Explanation 5 - Tax payable as conceded in the accounts includes the tax payable on suppressed or assessed turnover also.
Explanation 6.- For the purpose of this clause, "branch" does not include any place of business which is exclusively engaged in job work, manufacturing of ornaments/articles or polishing, and where there is no buying and/or selling of goods,
(ii) save as otherwise provided in this clause, the compounded tax payable under this clause shall be determined for an year and shall be payable in 12 monthly instalments.
(iii) a dealer who opts for payment of tax under this clause may collect tax at the rate as shown in the Table below, but where the tax so collected during the year is in excess of the tax payable for the year under this clause, the tax collected in excess shall be paid over to Government in addition to the tax payable under this clause.
(iv) The assessing authority, for valid and sufficient reasons, such as shifting of place of business, furnishing of false information, suppression of relevant information, failure to furnish such information demanded, may refuse permission to pay tax under this section and cancel the permission, if any, granted:
Provided that no orders under this sub-clause shall be issued without giving the dealer an opportunity of being heard and without prior approval of the District Deputy Commissioner.
(v) Notwithstanding anything contained in section 55 or section 60 of this Act, orders under sub-clause (iv) shall appealable only to the Appellate Tribunals.
(vi) In case where permission has been cancelled, the amount, if any paid based on the permission, shall be apportioned against the output tax due from the dealer.
(vii) Where a dealer had paid tax tinder this clause for the previous year, the tax payable,-
(a) by a dealer whose total turnover for the previous year was rupees ten lakhs or below, shall be at the rate of one per cent on the turnover of sales in the State, during the year under option; and,
(b) by the class of dealers mentioned in column (1) of the Table below for the succeeding year under this clause shall be calculated at the appropriate rates mentioned in column (2) or column (3) of the Table below, whichever is higher.
Table
(g) Any dealer in poultry or poultry meat which are brought from outside the State may, at his option, instead of paying tax in accordance with the provisions of the said section, pay tax on the basis of the floor value fixed by the Commissioner from time to time at the rate of 14.5% during the time of entry of goods into the State.
(h) any dealer, who is an importer or a manufacturer of cigarettes and similar products mentioned in serial number 1 of the Table in clause (a) of sub-section (1) of section 6, may, at his option, pay, in such manner and subject to such conditions and restrictions as may be prescribed, in lieu of the tax payableby him on such goods under the said sub-section, tax at the rate of 30 per cent of the maximum retail price of such goods.
Explanation:- For the purpose of this clause, maximum retail price in respect of the goods means the maximum price printed on the package of any goods at which such goods may be sold to the ultimate consumer:
(a) from an importer or a manufacturer who has opted for payment of tax under this clause; or
(b) from another registered dealer where the tax on the maximum retail price of such goods was paid in the State on an earlier sale, such dealer shall, notwithstanding anything contained in this Act, but subject to such conditions and restrictions as may be prescribed, be exempted from payment of tax under clause (a) of sub-section (1) of section 6 in respect of the sale of such goods and shall be entitled to recover from the buyers the amount of tax paid by him at the time of purchase of such goods and the turnover of such goods shall not be included in the total turnover for the purpose of sub-section (5) of section 6, where the dealer opts for payment of tax in accordance with the said sub-section in respect of goods other than the goods covered under this clause:
(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.