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, 2010.
By order of the Governor,
K. MADHUSUDANAN NAIR,
ACT 10 of 2010
EXTRACT OF THE KERALA FINANCE ACT, 2010
An Act to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2010-2011.
Preamble.-WHEREAS, it is expedient to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2010-
BE it enacted in the Sixty-first Year of the Republic of India as follows:-
1. Short title and commencement.-
This Act may be called the Kerala Finance Act, 2010.
(2) Save as otherwise provided in this Act,-
(a) sub-clauses (i), (iii) and (iv) of clause (b) and sub-clauses (i) and (ii) of clause (c) of sub-section (21) of section 8 shall be deemed to have come into force on the 1st day of April, 2005;
(b) sub-clause (iii) of clause (c) of sub-section (21) of section 8 shall be deemed to have come into force on the 1st day of April, 2007;
(c) clause (i) of sub-section (3) of section 4 and clause (ii) of sub-section (10) of section 8 shall be deemed to have come into force on the 1st day of April, 2008;
(d) clause (i) of sub-section (4) of section 4 shall be deemed to have come into force on the 1st day of April, 2009;
(e) sub-clause (iv) of clause (a) and sub-clause (viii) of clause (b) of sub-section (21) of section 8 shall be deemed to have come into force on the 18th day of September, 2009 ;
(f) clause (iv) of sub-section (4) of section 8 shall be deemed to have come into force on the 13th day of November, 2009;
(g) clause (ix) of sub-section (3) of section 3; item (r) in serial number 3 (i) of clause (i) and clause (ii) of sub-section (3) of section 5; clause (iii) of sub-section (2) of section 6; and section 9 shall come into force at once; and
(h) the remaining provisions of this Act shall be deemed to have come into force on the 1st day of April, 2010.
2. Amendment of Act 11 of 1957.-
In the Kerala Surcharge on Taxes Act, 1957 (11 of 1957),-
(1) in section 3A,-
(i) in sub-section (3), for the figures, words and symbol "30th September, 2008 or on such date as may be notified by the Government." The figures, words and symbol "31st December, 2010." shall be substituted ;
(ii) for sub-section (4), the following sub-section shall be substituted, namely:-
"(4) On receipt of an application under sub-section (3), the assessing authority shall verify the same and intimate the amount due to the assessee and thereupon the assessee shall remit the amount in lump sum or in three equal instalments, on or before 31st December, 2010 :
Provided that notwithstanding anything contained in this section, where,
(a) after the last date for filing option, the Government have notified a further date under sub-section (3); and
(b) if an applicant had filed his option earlier and remitted at least one instalment, but had failed to remit the balance amount due and his earlier option was revoked by the assessing authority,
on furnishing of a fresh option, the amount paid under the earlier option shall be treated as the amount paid under the subsequent option."
(2) in section 3B,-
(i) in sub-section (2), for the figures, words and symbols "30th September, 2009 or on such date as may be notified by the Government." The figures, words and symbols "31st December, 2010." shall be substituted;
(ii) for sub-section (3), the following sub-section shall be substituted, namely:-
"(3) On receipt of an application under sub-section (2), the assessing authority shall verify the same and intimate the amount due to the assessee and thereupon the assessee shall remit the amount in lump sum or in three equal instalments on or before 31st December, 2010 :
4. Amendment of Act 15 of 1963.-
the Kerala General Sales Tax Act, 1963 (15 of 1963),-
(1) for section 7, the following section shall be substituted, namely:-
"7 Payment of tax at compounded rates.-
Notwithstanding anything contained in sub-section (2) of section 5, any bar attached hotel, not being a star hotel of and above four star hotel, heritage hotel or club, may, at its option, instead of paying turnover tax on foreign liquor in accordance with the said subsection, pay turnover tax on the turnover of foreign liquor calculated at the rates in clauses (a) or (b) of items (i) and (ii), respectively, whichever is higher,-
(i) in respect of a bar attached hotel of and below two star,
(a) at one hundred and forty per cent of the purchase value of such liquor, in the case of those situated within the area of a municipal corporation or a municipal council or a cantonment, and at one hundred and thirty five per cent of the purchase value of such liquor, in the case of those situated in any other place; or
(b) at one hundred and fifteen per cent of the highest turnover tax payable by it as conceded in the return or accounts or the turnover tax paid for any of the previous consecutive three years; and
(ii) in respect of a bar attached hotel of three stars,
(a) at one hundred and eighty per cent of the purchase value of such liquor, in the case of those situated within the area of a municipal corporation or a municipal council or a cantonment, and at one hundred and seventy per cent of the purchase value of such liquor, in the case of those situated in any other place; or
(b) at one hundred and twenty five per cent of the highest turnover tax payable by it as conceded in the return or accounts or the turnover tax paid for any of the previous consecutive three years."
(2) in section 17,-
(i) in sub-section (6), for the fourth proviso, the following proviso shall be substituted, namely:-
"Provided also that the assessment relating to the years upto and including the year 2004-05 pending as on 31st March, 2010 shall be completed on or before the 31st day of March, 2011 :
Provided further that in cases where any assessment completed under this Act has been reopened with the permission of the Commissioner, the time limit mentioned in section 19 shall not apply."
(ii) in sub-section (8)-
(a) for the first proviso, the following proviso shall be substituted, namely:-
"Provided that all such assessments or reassessments pending as on 31st March, 2010 shall be completed on or before 31st March, 2011."
(b) 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 31st March, 2010 shall be completed on or before 31st March, 2011."
(3) in section 23B,-
(i) in sub-section (1), for the words "due under the Act" the words, figures and brackets "due under this Act or the Central Sales Tax Act, 1956 (Central Act 74 of 1956)" shall be substituted ;
(ii) in sub-section (3), for the figures, words and symbols "30th September, 2008 or on such date as may be notified by the Government." The figures, words and symbols "31st December, 2010." shall be substituted ;
(iii) for sub-section (4), the following sub-section shall be substituted, namely:-
"(4) On receipt of an application under sub-section (3), the assessing authority shall verify the same and intimate the amount due to the assessee and thereupon the assessee shall remit the amount in lump sum or in three equal instalments on or before 31st December, 2010 :
(4) in section 23BA,-
(ii) in sub-section (2), for the figures, words and symbols "30th September, 2009 or on such date as may be notified by the Government." The figures, words and symbols "31st December, 2010." shall be substituted;
(iii) for sub-section (3), the following sub-section shall be substituted, namely:-
"(3) On receipt of an application under sub-section (2), the assessing authority shall verify the same and intimate the amount due to the assessee and thereupon the assessee shall remit the amount in lump sum or in three equal instalments on or before 31st December, 2010:
(5) in the SCHEDULE, in serial number "2. Foreign Liquor"-
(i) in item "(i) Beer and wine," for the figure "60" under the heading "Rate of tax (per cent)," the figure "50" shall be substituted;
(ii) in item "(ii) Other than Beer and wine," for the figure "90" under the heading "Rate of tax (per cent)," the figure "100" shall be substituted.
9. Validation.-
(1) Notwithstanding anything contained in the Kerala Provisional Collection of Revenues Act, 1985 (10 of 1985) or in the Kerala Stamp Act, 1959 (17 of 1959) or in the Kerala Value Added Tax Act, 2003 (30 of 2004) or in any other law for the time being in force, during the period commencing on and from the 1st day of April, 2010 to the date of publication of this Act, during which the declared provision contained in the Kerala Finance Bill, 2010 (Bill No. 330 of the XII Kerala Legislative Assembly) were in force, anything done or any action taken or any tax or duty collected by virtue of the provisions of the said Bill shall be deemed to have been validly done or taken or collected under the said Acts as if the said amendments had been in force on and from the 1st day of April, 2010 to the date of publication of this Act and no action shall lie against any dealer or authority on the ground of short levy or for refund of excess tax or duty and the tax or duty so collected or paid by a dealer or authority, if any, shall be paid over to the Government.
(2) Notwithstanding anything contained in the Kerala Value Added Tax Act, 2003 (Act 30 of 2004) any exemption or reduction of tax granted by virtue of the provisions of the Kerala Finance Bill, 2010 (Bill No. 330 of the XII Kerala Legislative Assembly) in respect of the period with effect on and from the 1st day of April, 2005 to the date of publication of this Act, shall be deemed to have been validly done and any tax collected or paid by a dealer at such higher rates shall be deemed to have been validly collected or paid and the tax so collected shall be paid over to the Government and shall not be refunded."