The Kerala General Sales Tax - Notifications
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Body

THE KERALA FINANCE BILL, 2007

BILL

to give effect to certain financial proposals of the Government of Kerala for the Financial year 2007-08.

Preamble.-

WHEREAS , it is expedient to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2007-08.

BE it enacted in the Fifty-eighth Year of the Republic of India as follows:

1. Short title and commencement.-

(1) This Act may be called the KeralaFinance Act, 2007.

(2) It shall come into force on the Ist day of April, 2007.

3. Amendment of Act 15 of 1963.-

In the Kerala General Sales Tax Act, 1963 (15 of 1963),-

(1) in section 7,-

(i) after the words "calculated", the words "at the rates in clause (a) or (b) whichever is higher" shall be inserted;

(ii) in clause (b), the words "which ever is higher" shall be omitted;

(2) in section 17,-

(a) for the fourth proviso to sub-section (6), the following proviso shall be substituted, namely:-

"Provided also that the assessment relating to the years up to and including the year 2001-02 pending as on 31st March, 2007 shall be completed on or before the 31st day of March, 2008.";

(b) in sub-section (8),-

(i) for the first proviso, the following proviso shall be substituted, namely:-

"Provided that all such assessments or re-assessments pending as on the 31st day of March, 2007 shall be completed on or before the 31st day of March, 2008.";

(ii) for the third proviso the following proviso shall be substituted, namely:-

"Provided also that all such modified assessments or modified reassessments or remanded assessments pending as on the 31st day of March, 2007 shall be completed on or before the 31st day of March, 2008.";

(3) after section 17C the following section shall be inserted, namely :-

"17D . Fast Track method of completion of Assessment:-

(1) Notwithstanding anything contained in any other law for the time being in force or in any other provisions of this Act all assessments pending under the Act as on the 1st day of April, 2007 shall, subject to the provisions of sub-section (2), be completed under the fast track method.

(2) The assessment under sub-section (1) shall be completed in the following manner, namely:-

(a) The assessment shall be completed by a 'team' comprising of a team of officers which shall be constituted by the Commissioner.

(b) In the case of files relating to Special Circles, there shall be three Assistant Commissioners in the team, headed by a Deputy Commissioner. In the case of Ordinary Circles, the team shall be headed by an Assistant Commissioner and comprise three Commercial Tax Officers as members.

(c) All files of the dealer pertaining to an assessment year shall be clubbed with assessment file and taken up for disposal.

(d) No assessment completed by the teams shall be re-opened unless there is fresh receipt of materials pertaining to tax evasion.

Provided that the assessment may be reopened with the prior permission of the Commissioner:

(e) The assessment shall be completed fairly by a summary proceeding.

(f) The team shall be competent to offer reasonable concessions after recording the reasons thereof on the estimation of suppression of turnover on account of any offences detected against the dealer, and also on the interest payable up to a maximum of fifty percent of that payable, in cases where the dealer offers immediate payment of the dues.

(g) The hearings shall be open and in public view. The date and venue of the sitting shall be intimated in advance to the dealers concerned. Information shall also be published through the local media.

(h) No adjournment in the cases listed at a session shall be permitted except under exceptional circumstances.

(i) If a dealer fails to appear, the assessment shall be finalized 'ex-parte' following the principles of natural justice.

(3) All assessment under fast tract method shall be by unanimous decisions signed by all team members.

(4) Notwithstanding anything contained in any other law for the time being in force the officers on the team shall be absolved from personal liability on account any assessment order issued in good faith.

(5) Notwithstanding anything contained in any other provisions of this Act, appeals against the assessment orders issued under fast track method shall lie to the Sales Tax Appellate Tribunal and no such appeal shall lie unless the dealer has paid the entire tax amount.".

7. Amendment of Act 30 of 2004.-

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

(1) in section 6,-

(a) in sub-section (1),-

(i) for clause (a), the following clause shall be substituted, namely:-

"(a) in the case of goods specified in the Second and Third Schedules at the rates specified therein and at all points of sale of such goods within the State and in the case of,-

(i) aerated branded soft drinks excluding soda;

(ii) marble, granite and their slabs and tiles,

at the rate of twenty per cent at all points of sale within the state.";

(ii) in the fourth proviso,-

(a) for the words, brackets and letters "Project (KRWSA) or OFD Works" the words, brackets and letters "Project (KRWSA) and OFD Works" shall be substituted ;

(b) the following words shall be added at the end, namely:-

"and the beneficiary committees shall be entitled to receive payment even without taking registration under the Act.";

(iii) after the fifth proviso, the following provisos shall be inserted, namely:-

"Provided also that in respect of sale of fuel and lubricants to foreign-going vessels, other than fishing vessels, the tax payable under clause (a) or (d) above shall, subject to conditions and restrictions as may be prescribed, be half percent:

Provided also that a builder shall not be liable to pay tax on the transfer of goods involved in the work contract in respect of construction of flat/apartment, if the value of such building has been subjected to stamp duty under the Kerala Stamp Act, 1959 along with the undivided share of land while transferring such building to its beneficiaries." ;

(b) in sub-section (2), in clause ( c) after the words "if the cost of the work" the words "including the value of materials supplied by the awarder" shall be inserted;

(2) in section 8,-

(a) in clause (a), in sub-clause (iii), after the existing proviso the following provisos shall be inserted, namely:-

"Provided further that this sub-clause shall not be applicable to any works taken up after 31st March, 2005 as a subsequent part or phase of the original work for which option had been filed under sub-section (7) or (7A) of section 7 of Kerala General Sales Tax Act, 1963 (15 of 1963):

Provided also that the rate under this sub clause shall be applicable only for the payments received up to 31st March, 2007.";

(b) in clause (b),-

(i) in item (i), for the letters and figures "Rs.30,000" the letters and figures "Rs.60,000" shall be substituted;

(ii) in item (ii), for the letters and figures "Rs.90,000" the letters and figures "Rs.1,80,000" shall be substituted;

(iii) in item (iii), for the letters and figures "Rs.1,80,000" the letters and figures "Rs. 3,60,000" shall be substituted;

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

"Provided that in the case of dealers, who opted to pay compounded tax under this clause, no separate assessment shall be made in respect of m-sand produced by them.";

(i) after sub-clause (iv), the following clauses shall be inserted, namely:-

"(v) Notwithstanding anything contained in this Act, where a dealer has not exercised the option under sub-clause (iv) within the period prescribed therein, and a dealer who has commenced business during the period from the 1st day of October, 2006 to 28th day of February, 2007, may at his option, instead of paying tax in respect of such goods in accordance with the provisions of section 6, pay tax at compounded rate per month from the commencement of the business at one hundred and fifty percent of the average monthly tax paid or payable under the Act from the commencement of business to 28th of February, 2007.

(vi) Notwithstanding anything contained in sub-clause (ii) of clause(f) where a dealer who has started business during the year 2005-06 has become ineligible for paying tax at compounded rates on account of excess of input tax credit over output tax payable by such dealer during that period, such dealer may, at his option, instead of paying tax in accordance with provisions of section 6, pay tax at the compounded rate per month from the 1st day of April, 2006 at one hundred and fifty percent of the average monthly tax paid or payable under the Act from 1st day of April, 2006 to 30th day of September, 2006." ;

(ii) the following Explanation shall be added, namely:-

Explanation :- For the purpose of this clause 'tax payable under the Act' shall mean the aggregate of net tax payable and tax due under sub section (2) of section 6.";

(iii) after the existing provisos, the following proviso shall be inserted, namely:-"

Provided also that in the case of dealers exercising option for compounding under the clause (f) between 1st December, 2006 and 15th March, 2007, the compounded tax payable for the year 2007-08 shall be one hundred and fifteen per cent of the compounded tax fixed for the year 2006-07 or tax collected as per accounts, whichever is higher.";

(d) after clause (f), the following clauses shall be inserted, namely:-

"(g) any dealer in marble and granite may at his option, instead of paying tax in respect of such goods in accordance with the provisions of section 6, pay tax at one hundred and thirty per cent of the highest tax payable by him, either under this Act or under the Kerala General Sales Tax Act, 1963 (15 of 1963), for a period of twelve months during any of the three consecutive years preceding that to which such option relates, or tax collected in the year, whichever is higher.

(h) any dealer, who is an importer or a manufacturer having dealings in commodities covered under the Standards of Weights and Measures (Packaged Commodities) Rules, 1977, issued under Standard of Weights and Measures Act, 1976 (Central Act 60 of 1976) 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 respective rates on 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.

Provided 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:

Provided further that where a registered dealer has purchased any goods, from an importer or a manufacturer who has opted for payment of tax under this clause or 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 exempt from payment of tax under subsection (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.";

(3) in section 11,-

(a) in sub-section (4), in the second proviso, after the words and figure "section 8 shall be eligible" the words and figures "with effect from 1st April, 2005" shall be inserted;

(b) after sub-section (5), the following proviso shall be inserted, namely:-"

Provided that where a dealer remits differential tax in accordance with the provisions of the Act, he may, for the period up to 31st March, 2007, issue debit note for the tax amount subsequently remitted, to the purchasing dealer to claim input tax credit to the extent of the tax covered in the debit note subject to such condition as may be prescribed.";

(4) in section 12,

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

"Provided also that where the goods in respect of which tax is payable under sub-section (2) of section 6 is sold in the state or in the course of interstate trade or used in the course of manufacture of taxable goods in the month in which it is purchased, the special rebate allowable in respect of such goods resold or sold in the course of interstate trade or used in the manufacture of goods liable to pay tax under this Act or Central Sales Tax Act, 1957 may be availed in the month itself.";

(5) in section 16,-

(a) in sub-section (1),-

(i) for the third proviso, the following proviso shall be substituted, namely:-

"Provided also that in the case of casual trader, the minimum registration fee to be paid shall be two thousand five hundred rupees per month and the maximum period of validity of registration certificate shall be three months from the date of issue of certificate.";

(ii) after the fourth proviso, the following proviso shall be inserted, namely:-

"Provided also that a person shall not be entitled for more than one registration under this Act.";

(b) to sub section (2), the following proviso shall be inserted, namely:-

"Provided that the date of effect of the registration shall be the date of filing of the valid application before the registering authority.";

(6) in section 20,-

(a) after sub-section (2), the following sub-section shall be inserted, namely:-

"(2A). Dealers whose output tax liability per annum is rupees twenty five lakhs or more per annum on account of first taxable sales in the state, shall file their returns as well as purchase and sale lists electronically.";

(b) in sub-section (3), the following words shall be added at the end namely:-

"except for considering the eligibility for payment of tax under sub-section (5) of section 6";

(7) in section 22, sub-section (7) shall be omitted;

(8) in section 25, in sub-section (1) after the words "has escaped assessment to tax in any year" the words "or return period" shall be inserted;

(9) in section 30, after sub-section (2), the following proviso shall be inserted, namely:-

"Provided that the dealers who are paying tax under sub section (5) of section 6 are entitled to recover from the buyers the amount of tax paid by him on the purchase value of such goods at the time of purchase.";

(10) in section 40, the existing section shall be renumbered as sub-section (1) and after the sub-section (1) as so renumbered, the following sub-sections shall be inserted, namely:-

"(2) Where a dealer effects first taxable sale, he shall furnish the name and address of the purchaser in the sale bill/invoices, and where the sale is to a dealer, the address shall include TIN or PIN, as the case may be.

(3) Where the TIN or PIN details are not furnished as specified in sub-section (2), such dealer shall be liable for payment of the tax on the Maximum Retail Price (MRP) of such goods, where it is ascertainable.

Explanation:-- The word 'first taxable sale' shall have the same meaning as explained in sub section (5) of section 6.";

(11) in section 42, the existing section shall be renumbered as sub-section (1) and after sub-section (1) as so renumbered, the following sub-section shall be inserted, namely:-

"(2) Where any dealer detects any omission or mistake in the annual return submitted by him with reference to the audited figures, he shall file revised annual return rectifying the mistake or omission along with the audit certificate. Where, as a result of such revision, the tax liability increases, the revised return shall be accompanied by proof of payment of such tax, interest due thereon under sub section (5) of section 31, and penal interest, calculated at twice the rate specified under sub section (5) of section 31:

Provided that this sub-section shall not apply to a dealer against whom any penal action is initiated in respect of such omission or mistake under any of the provisions of this Act.";

(12) in section 55, in sub-section (1), clause (a) of second proviso shall be omitted.

(13) in the SCHEDULES,-

(a) in the First Schedule,-

(i) after serial number 4 in column (1) and the entries against it in columns (2) and (3), the following serial number and entries shall respectively be inserted, namely :-

"4A.	(1) Beedi, Beedi Tobacco	2403-10-31
	(2) Cheroots	2402-10-20.";

(ii) serial number 17A in column (1) and the entries against it in columns (2) and (3) shall be omitted;

(iii) after serial number 23 in column (1) and the entries against it in columns (2) and (3) the following serial number and entries shall be inserted, namely:-

"23A.

Handloom cloth, handloom bedsheet and pillow cover

******** ";

(iv) for serial number 27 and the entries against it in columns (2) and (3), the following shall be substituted, namely:-

"27

Khadi Cloth, Garments and Made ups

******* ";

(v) serial number 30 and the entries against it in columns (2) and (3) shall be omitted;

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

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

(viii) serial number 52 and the entries against it in columns (2) and (3) shall be omitted.

(b) in the Second Schedule,-

(i) after serial number 7 in column (1) and the entries against it in columns (2) and (3) the following serial number and entries shall respectively be inserted, namely:-

"8. 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 200gm/m2	5208
	(b) Woven fabrics of cotton containing 85% or more by weight of cotton weighing more than 200gm/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 200gm/m	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 200gm/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 170m2	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 towelling and similar woven terry fabrics other than narrow fabrics of HSN heading no. 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 stich), whether or not made up	5805
	(f) Narrow wovens fabrics other than goods HSN heading No. 5807; narrow fabrics consisting warpwithout weft assembled by means of an adhesive (bolducs)	5806
	(g) Woven fabrics of metal thread and woven fabrics of metalised yarn of HSN heading No. 5605 of a kind used in apparel as furnishing fabrics of a similar purposes, 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 crocheted fabrics
	(a) Pile fabrics, including 'long pile' fabrics and terry fabrics, knitted or crocheted	6001
	(b) Knitted or crocheted fabrics of a width not exceeding 30 cm, containing by weight 5 % or more of elasto meric yarn of rubber thread, other than those of HSN heading No. 6001	6002
	(c) knitted of crocheted fabrics of a width not exceeding 30 cm, other than those of HSN heading Nos. 6001 or 6002	6003
	(d) knitted of crocheted fabrics of a width exceeding 30cm, containing by weight 5% or more of elasto metric yarn or 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
	(f) Other knitted or crocheted fabrics	6006
(15)	Embroidery or zari articles, that is tosay, imi, zari, kasab,saima, dabka, chumki, gota sitara, naqsi,kora, glass bead, badia
	(a) Embroidery without visible ground	5810.10.00
	(b) Other embroidery of cotton	5810.91.00
	(c) Embroidery of man made fibres
	(a) Embroidered badges , motifs and the like	5810.92.10
	(b) Other embroidered articles	5810.92.90
	(d) Embroidery of other textile materials	5810.99.00
	(e) Zari articles	****
(16)	Silk fabrics and sarees made of natural silk	5007" ;

(c) in the Third Schedule,-

(i) serial number 8 and entries against it in columns (2 ) and (3) shall be omitted;

(ii) after serial number 28, and the entries against it in column (2) and (3) the following serial number and entries shall respectively be inserted, namely:-

"28A.

Compact Fluorescent Lamps

****** " ;

(iii) in serial number 36,-

(a) in the heading after the words "mosquito repellants and those specifically mentioned in First Schedule" the words "and those notified under clause (d) of sub section (1) of section 6" shall be inserted;

(b) after item (25) and the entries against it in column (2) and (3) the following item and the entries shall respectively be inserted, namely:-

26	Life Saving medicine
	(1) Vaccines of human medicine
	(a) Single Vaccine
	(a) for Cholera and typhoid	3002.20.11
	(b) for hepatitis	3002.20.12
	(c) for tetanus	3002.20.13
	(d) for polio	3002.20.14
	(e) for tuberculosis	3002.20.15
	(f) for rabies	3002.20.16
	(g) for Japanese Enceephalitis	3002.20.17
	(h) for whooping cough (pertusis)	3002.20.18
	(i) Others	3002.20.19
	(ii) Mixed Vaccines
	(a) for diphtheria, pertusis and tetanus (DPT)	3002.20.21
	(b) for diptheria and tetanus	3002.20.22
	(c) for measles, mumps and rubella (MMR)	3002.20.23
	(d) for typhoid-para typhoid (TAB) oryphoid-para typhoid-cholera (TABC)	3002.20.24
	(e) Other	3002.20.29
	(2) Vaccines for veterinary medicines	3002.30.00
	(3) Animal Blood prepared for therapeutic, prophylactic or diagnostic uses	3002.90.20
	(4) Cultures of micro organisms (excluding Yeast)	3002.90.30
	(5) Toxins	3002.90.40
	(6) Anti Sera
	(a) for diptheria	3002.10.11
	(b) for tetanus	3002.10.12
	(c) for rabies	3002.10.13
	(d) for snake venom	3002.10.14
	(e) Other	3002.10.15
	(7) Hemoglobin bloodglobulins and serum globulins	3002.10.20
	(8) Insulin injection	3002.31.10
	(9) Cyclosporine
	(10) Dinal Solution required for continuous ambulatory peritoneal dialysis treatment of kidney patients
	(11) Antiretrovial Drugs (HIV Patients)
	(12) Glevce Capsules (for treatment of Blood Cancer)	*****
		";

(iv) in serial number 55, in the entries against it in column (2), the following shall be added at the end, namely:-

"at the point of sale by dealers whose annual turnover does not exceed rupees twenty five lakhs." ;

(v) in serial number 87, for the entries in column (2), the following entries shall be substituted, namely:-

"(1) Footwear of all kinds whose MRP does not exceed Rs.200/-and its MRP is embossed on the sole of the footwear in the case of moulded plastic footwear, and in other cases, indelibly marked.

(2) Parts of footwear such as rubber hawai sheet, Straps, microcellular rubber sheet and moulded plastic uppers". ;

(vi) in serial number 97, in the entries in column (2), the following shall be inserted at the end, namely:-

" except granite metal produced with the aid of crushing machines.";

(vii) in serial number 137, after item (12) and the entries against it in column (2) and (3), the following item and entries shall respectively be inserted, namely;-

" (13)

Choodarapetti

****** "

(d) in List A,-

(i) in serial number 111A, for the entries against it in column (3) the following entry shall be substituted namely:-

"2907-11-10 " ;

(ii) after serial number 143 and the entries against it in column (2) and (3), the following serial number and entries shall be inserted, namely:-

"144.

Soft wood, namely kattadi, vatta, pala, matti and elavu.

****** ".

DECALARATION UNDER THE KERALA PROVISIONSAL COLLECTION OF REVENUES ACT , 1985 (10 OF 1985)

It is hereby declared that it is expedient in the public interest that all the provisions of this Bill shall have effect from the 1st day of April, 2007 under the Kerala Provisional Collection of Revenues Act, 1985 (10 of 1985)

STATEMENT OF OBJECTS AND REASONS

The Bill seeks to amend the following enactments to give effect to the financial proposals of Government of Kerala for the financial year 200708 as announced in paras 143 to 145, 148 to 154, 157, 158, 160, 161, 163 to 177, 179, 182 to 185 and 187 to 203 in the Budget Speech, namely :-

1. The Kerala Stamp Act, 1959 (17 of 1959)

2. The Kerala General Sales Tax Act, 1963 (15 of 1963)

3. The Kerala Chitties Act, 1975 (23 of 1975)

4 . The Kerala Motor Vehicles Taxation Act, 1976 (19 of 1976)

5. The Kerala Tax on Luxuries Act, 1976 (32 of 1976)

6 . 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.

MEMORANDUM REGARDING DELEGATED LEGISLATION

1. Sub-clause (4) of clause 2 of the Bill proposes to insert a new section 10A to the Kerala Stamp Act, 1959 which seeks to empower the Government to prescribe the fees, period, manner and payment for issuing licence.

2. Clause 3 of the Bill proposes to insert a new section 21A to the Kerala Chitties Act, 1975 which seeks to empower the Government to notify the class or classes of forman and to prescribe the rate and manner of service charge payable on the forman commission.

3. Sub-clause (1) (iii) of clause 7 of the Bill proposes to amend section 6 (1) of the Kerala Value Added Tax Act, 2003, which seeks to empower the Government to prescribe such conditions and restrictions in respect of sale of fuel and lubricants to foreign going vessels other than fishing vessels in the case of goods specified in the clauses (a) and (d) of section 6(1) of the Act.

4. Sub-clause (2) (d) of clause 7 of the Bill proposes to amend section 8 of the Kerala Value Added Tax Act, 2003, which seeks to empower the Government to prescribe such conditions and restrictions and the manner by which a dealer who is an importer or a manufacturer covered under the standards of Weights and Measures (Packaged Commodities) Rules, 1977, shall pay tax at the respective rates in the Maximum Retail Price and proviso to clause (h) proposed to be inserted seeks to empower the Government to prescribe such conditions and restrictions for getting exemption from payment of tax under section 6(1) of the Act in respect of a registered dealer who has purchased any goods from an importer or a manufacturer who has opted for payment of tax under clause (h) of section 8.

5. Sub-clause (3) (b) of clause 7 of the Bill proposes to amend section 11 of the Kerala Value Added Tax Act, 2003, which seeks to empower the Government to prescribe such conditions for the purchasing dealer to claim input tax credit to the extent of the tax covered in the debit not issued by a dealer who remits differential tax.

The matters in respect of which rules are to be made are either administrative in nature or matters of detail. 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.

Dr. T. M. THOMAS ISSAC.

INSTAVAT COMMENT

Amendment to FIRST SCHEDULE (Exempt Goods) by Kerala Finance Bill 2007 read as under:

Serial No 17A is omitted by Kerala Finance Bill 2007 earlier read as under:
17A	Embroidery or zari articles, that is to say, imi,zari,kasab,saima dabka, chumki, gota sitara, naqsi, kora, glass bead, badia
	(1) Embroidery without visible ground	5810.10.00
	(2) Other embroidery of cotton	5810.91.00
	(3) Embroidery of 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	****
Serial No 27 is modifed by Kerala Finance Bill 2007 earlier read as under
27	Khadi garments and made ups	****
	After amendment read as under
	Khadi Cloth, Garments and Made ups	****
Serial No 30 is omitted by Kerala Finance Bill 2007 earlier read as under:
30	Life Saving Drugs
	(1) Vaccines of human medicines
	(a) Single Vaccines
	(i) for cholera and typhoid	3002.20.11
	(ii) for hepatitis	3002.20.12
	(iii) for tetanus	3002.20.13
	(iv) for polio	3002.20.14
	(v) for tuberculosis	3002.20.15
	(vi) for rabies	3002.20.16
	(vii) for Japanese Enceephalitis	3002.20.17
	(viii) for whooping cough (pertusis)	3002.20.18
	(ix) Other	3002.20.19
	(b) Mixed Vaccines
	(i) for diphtheria, pertusis and tetanus (DPT)	3002.20.21
	(ii) for diptheria and tetanus (DT)	3002.20.22
	(iii) for measles, mumps and rubella (MMR)	3002.20.23
	(iv) for typhoid-para typhoid (TAB) or typhoid-para typhoid-cholera (TABC)	3002.20.24
	(v) Other	3002.20.29
	(2) Vaccines for veterinary medicines	3002.30.00
	(3) Animal Blood prepared for therapeutic, prophylactic or diagnostic uses	3002.90.20
	(4) Cultures of Micro organisms (excluding Yeast)	3002.90.30
	(5) Other toxoids and anti toxins	*****
	(6) Anti Sera
	(a) for diptheria	3002.10.11
	(b) for tetanus	3002.10.12
	(c) for rabies	3002.10.13
	(d) for snake venom	3002.10.14
	(e) Other	3002.10.19
	(7) Hemoglobin blood globulins and serum globulins	3002.10.20
	(8) Insulin injection	3004.31.10
	(9) Cyclosporine	*****
	(10) Dineal Solution required for continuous Ambulatory Peritoneal Dialysis treatment of kidney patients	***
	(11) Antiretrovial Drugs (HIV Patients)	***
	(12) Glevce Capsules (for treatment of Blood Cancer)	***
Serial No 46A is omitted by Kerala Finance Bill 2007 earlier read as under:
46A	Silk fabrics and sarees made of natural silk	5007
Serial No 47 is omitted by Kerala Finance Bill 2007 earlier read as under:
47	Slates, slate pencils and chalks
	(1) Slates	9610.00.00
	(2) Slate pencils	9609.90.10
	(3) Writng or drawing chalks and tailors chalks	9609.90.30
Serial No 51 is omitted by Kerala Finance Bill 2007 earlier read as under:
51	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 200gm/m2	5208
	(b) Woven fabrics of cotton containing 85% or more by weight of cotton weighing more than 200gm/ 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 200gm/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 200gm/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 170m2	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 towelling and similar woven terry fabrics other than narrow fabrics of HSN heading no. 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 crochetted 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 stich), whether or not made up	5805
	(f)Narrow wovens 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 metalised yarn of HSN heading No. 5605 of a kind used in apparel as furnishing fabrics of a similar purposes, 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 exceding 30 cm, containg by weight 5 % or more of elasto meric yarn of rubber thread, other than those of HSN heading No. 6001	6002
	(c) knitted of chrocheted fabrics of a width not exceding 30 cm, other than those of HSN heading Nos. 6001 or 6002	6003
	(d) knitted of chrocheted fabrics of a width exceding 30 cm, containg by weight 5% or more of elasto meric yarn or rubber thread, other than those of HSN heading No. 6001	6004
	(e) Wrap knitt fabrics (including those made on gallon knitting machines), other than those of HSN heading Nos. 6001 to 6004	6005
	(f) Other knitted or chrocheted fabrics	6006
Serial No 52 is omitted by Kerala Finance Bill 2007 earlier read as under:
52	Tobacco
	(1) Unmanufactured tobacco; tobacco refuse	2401
	(2) Cigars and cheroots	2402.10.10
	(3) Cigarillos	2402.10.20
	(4) Cigarettes	2402.20
	(5) Hookah/hoodku tobacco	2403.10.10
	(6) Smoking mixtures for pipes and cigarattes	2403.10.20
	(7) Beedis	2403.10.31
	(8) Homogenised or reconstituted tobacco	2403.91.00
	(9) Chewing tobacco	2403.99.10
	(10) Preparations containing chewing	2403.99.20
	(11) Jarda scented tobacco	2403.99.30
	(12) Snuff	2403.99.40
	(13) Tobacco extracts and essence	2403.99.60
	(14) Cut tobacco	2403.99.70
	(15) Other	2403.99.90

Amendment to THIRD SCHEDULE ( 4%) by Kerala Finance Bill 2007 read as under:

Serial No 8 is omitted by Kerala Finance Bill 2007 earlier read as under
8	Bamboo, bamboo ply and canes
	(1) Bamboo	1401.10.00
	(2) Canes	1401.90.10
	(3) Bamboo ply	****
Serial No 55 is modifed by Kerala Finance Bill 2007 earlier read as under
55	Handmade soaps other than those mentioned in the First Schedule	****
	After amendment read as under
	Handmade soaps other than those mentioned in the First Schedule at the point of sale by dealers whose annual turnover does not exceed rupees twenty five lakhs."
Serial No 87 is modifed by Kerala Finance Bill 2007 earlier read as under
87	footwear of all kind whose MRP does not exceed Rs. 200 and its MRP is embossed on the sole of the footwear.
	(1) Water proof footwear with outer soles and uppers of plastics, the uppers of which are neither fixed to the sole not assembled by stitching , riveting, nailing, screwing, plugging or similar processes
	(a) footwear incorporating a protective metal toe-cap	6401.10.90
	(b) other foot wear covering the knee	6401.91.90
	(c ) footwear covering the ankle but not covering the knee	6401.92.90
	(d) others	6401.99.90
	(2) Other footwear with outer soles and uppers of plastics
	(a) sports footwear	6402.12.90
	(b) other than sports footwear	6402.19.90
	(3) Footwear with upper straps or thongs assembled to the sole by means of *plugs*	6402.20.90
	(4) Hawai Chappals	6401.10.10
	(5) Parts including straps	6406.20.00
	After amendment read as under
	(1) Footwear of all kinds whose MRP does not exceed Rs.200/- and its MRP is embossed on the sole of the footwear in the case of moulded plastic footwear, and in other cases, indelibly marked.
	(2) Parts of footwear such as rubber hawai sheet, Straps, microcellular rubber sheet and moulded plastic uppers
Serial No 97 is modifed by Kerala Finance Bill 2007 earlier read as under
97	Pebbles, rubbles, gravels, broken or crushed stone of a kind commonly used for concrete aggregates, for road metalling or for railway or other ballast, shingle and flint , whether or not heat treated	2517.10
	After amendment read as under
	Pebbles, rubbles, gravels, broken or crushed stone of a kind commonly used for concrete aggregates, for road metalling or for railway or other ballast, shingle and flint , whether or not heat treated except granite metal produced with the aid of crushing machines.	2517.10