EXTRACT OF THE KERALA FINANCE ACT, 2008.
ACT 21 of 2008
NOTIFICATION No. 5012/Leg. A2/2008/Law. Dated,29th July, 2008
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 on the 28th day of July, 2008.
By order of the Governor,
V. G. KUMARI GIRIJA,
Special Secretary (Law).
An Act to give effect to certain financial proposals of the Government of Kerala for the Financial year 2008-2009.
Preamble.-WHEREAS, it is expedient to give effect to certain financial proposals of the Government of Kerala for the Financial year 2008-2009;
BE it enacted in the Fifty-ninth Year of the Republic of India as follows:-
1. Short title and commencement.-
(1) This Act may be called the Kerala Finance Act, 2008.
(2) Save as otherwise provided in this Act,-
(a) clause (b) of sub-section (6), sub-section (16), sub-section (17), sub-section (20), item (iii) and serial No. 60 inserted by item (iv) of clause (a) of sub-section (22) of section 5 shall be deemed to have come into force on the Ist day of April, 2005;
(b) 3rd proviso to clause (ii) of sub-section (3) of section 5 shall be deemed to have come into force on the 24th day of April, 2007;
(c) items (v), (vi) and (vii) of clause (b) of sub-section (22) of section 5 shall be deemed to have come into force on the 22nd day of October, 2007;
(d) the remaining provisions of this Act shall be deemed to have come into force on the 1st day of April, 2008;
2. Amendment of Act 11 of 1957.-
In the Kerala Surcharge on Tax Act, 1957 (11 of 1957),in section 3,-
(a) After sub section (1), the following sub-section shall be inserted, namely;
"(1A) The tax payble under sub-sections (1) and (2) of section 6 of the Kerala Value Added Tax Act, 2003 (30 of 2004), other than declared goods as defined in section 14 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) shall, in the case of national or multi-national companies functioning in the State as retail chains or direct marketing chains who import not less than fifty per cent of their stock from outside the State or country and not less than seventy-five per cent of whose sales are retail business, and whose total turnover exceeds five crore rupees per annum, but excluding such class of dealers of certain commodities, which may be notified by the Government from time to time, be increased by a surcharge at the rate of ten per cent, and the provisions of the Kerala Value Added Tax Act, 2003 (30 of 2004) shall apply in relation to the said surcharge as they apply in relation to the tax payable under the said Act.
Explanation I:- For the purpose of this section big retail chains and direct marketing chains mean retail sales outlets or part of retail sales outlets of companies which share a registered business name or commercial name by way of franchisee agreements or otherwise with standardized sales, purchase and promotional activities.
Explanation II:- For the purpose of this section 'retail business' shall mean sales to persons other than registered dealers.";
(b) for sub-section (2), the following sub-section shall be substituted, namely:-
"(2) Notwithstanding anything contained in sub-section (1) of section 22 of the Kerala General Sales Tax Act, 1963 and in sub-section (1) of section 30 of the Kerala Value Added Tax Act, 2003, no dealer referred to in sub-sections (1) and (1A) shall be entitled to collect the surcharge payable under the said sub-sections."
(c) in sub-section (3), for the word, brackets and figure "sub-section (1)" the words, brackets, figures and letter "sub-section (1) and (1A)" shall be substituted;
(d) after section 3, the following section shall be inserted, namely:-
"3A Reduction of arrears in certain cases.-
Notwithstanding anything contained in this Act, or in any Judgement, decree or order of any court, tribunal or appellate authority, an assessee who is in arrears of surcharge or any other amount due under the Act relating to the period ending on 31st March, 2005, may opt for settling the arrears by availing reduction at the following rates:
(a) in the case of demands relating to the periods up to and including 31st March, 1991, a reduction of twenty-five per cent for the principal surcharge amount, and complete reduction of the interest on the surcharge amount and for the amount of penalty and interest thereon;
(b) in the case of demands relating to the period from 1st April, 1991 to 31st March, 1996, a complete reduction of the interest on the surcharge amount, and for the amount of penalty and interest thereon;
(c) in the case of demands relating to the period from 1st April, 1996 to 31st March, 2000, a reduction of ninety-five per cent of the interest on the surcharge amount, and for the amount of penalty and interest thereon;(d) in the case of demands relating to the period from 1st April, 2000 to 31st March, 2005, a reduction of ninety per cent of the interest on the surcharge amount, and the amount of penalty and interest thereon:
(2) Notwithstanding anything contained in the Kerala Revenue Recovery Act, 1968 reduction of arrears under sub-section (1) shall be applicable to those cases in which revenue recovery proceedings have been initiated and the assessing authorities shall have the power to collect such amounts on settlement under sub-section (1) and where the amount is settled under subsection (1) the assessing authorities shall withdraw the revenue recovery proceedings against such assessees which will then be binding on the revenue authorities and such assessees shall not be liable for payment of any collection charges.
(3) An assessee who wishes to opt for payment of arrears under the section shall make an application to the assessing authority in the prescribed form before 30th September, 2008 or on such date as may be notified by the Government.
(4) On receipt of an application under sub-section (3), the assessing authority shall workout the actual amount of surcharge and other amounts due from the assessee under sub-section (1) and shall intimate the amount to the assessee, and thereupon the assessee shall remit twenty-five per cent of the amount within 15 days of receipt of the intimation, and the balance amount in three equal monthly instalments from the subsequent month.
(5) If the assessee commits any default in payment of the instalments, the reduction granted under sub-section (1) is liable to be revoked.
(6) No action under sub-section (5) shall be taken without giving notice to the assessee.
(7) If the amount settled under this provision has been a subject matter of appeal or revision, such appeal and revision may be continued and if the final orders of such appeal or revision results in the reduction of surcharge payable under this Act, the amount so reduced shall be refunded. But if, as the result of such appeal or revision, the surcharge payable under this Act is enhanced, the dealer shall pay such enhanced amount, with interest thereon, in accordance with the provisions of this Act."
7. Validation.-
Notwithstanding anything contained in the Kerala General Sales Tax Act, 1963 (15 of 1963) and the Kerala Value Added Tax Act, 2003 (30 of 2004), during the period from 1st April, 2008 to the date of publication of this Act, during which the declared provisions contained in the Kerala Finance Bill, 2008 (Bill No. 178 of the XII Kerala Legislative Assembly) were in force, anything done or any action taken by virtue of the said provisions of the said Bill shall be deemed to have been validly done or taken under this Act and no action shall lie against any dealer or authority on the ground of short levy or refund of excess tax, and tax collected or paid by a dealer, if any, shall be paid over to the Government.