HISTORY
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Body

EXTRACT OF THE KERALA FINANCE BILL, 2014

Bill No. 281

A-BILL

to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2014-2015.

Preamble. Whereas, it is expedient to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2014-2015;

Be it enacted in the Sixty-fifth Year of the Republic of India as follows:-

1. Short title. This Act may be called the Kerala Finance Act, 2014.

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

(1) in section 7,-

(a) for the words, letters and brackets "clauses (a) or (b) of items (i) and (ii) respectively, whichever is higher", the words, letters and brackets "in item (i) or (ii), as the case may be" shall be substituted;

(b) for item (i), the following item shall be substituted, namely:-

"(i) in respect of a bar attached hotel of and below two star, at one hundred and sixty per cent of the purchase value of such liquor.";

(c) in item (ii), after the words "hotel of three stars", the words, letters and brackets "as per clause (a) or (b) below, whichever is higher" shall be inserted;

(d) the proviso shall be omitted;

(2) in section 23B,-

(a) in sub-section (3), for the words and figures "31st December, 2013", the words and figures "31st March, 2014", shall be substituted;

(b) in sub-section (4), for the words and figures "31st December, 2013", the words and figures "31st March, 2014", shall be substituted;

"Note:- The items (a) and (b) above shall be deemed to have come into force on the 1st January, 2014.";

(3) in section 23BA,-

(a) the words "and Co-operative Societies" in the marginal heading and the words "or co-operative society", wherever they occur, shall be omitted;

(b) in sub-section (2), for the words and figures "before 30th September, 2011", the words and figures "before 31st July, 2014" shall be substituted;

(c) in sub-section (3), for the words and figures "before 30th September, 2011", the words and figures "31st December, 2014" shall be substituted;

(d) the Note shall be omitted;

(4) in the Schedule, in serial number "2 .Foreign Liquor", for item (ii) and the entries against it, the following items and entries shall, respectively, be substituted, namely:-

"(ii)	other than Beer and Wine, for which purchase value incurred is rupees 400 per case or more;	115
(iii)	other Foreign Liquor, not covered under items (i) and (ii) above	105

Explanation.- For the purpose of this Schedule,-

(i) "case" means, 48 bottles of 180 ml each, or 24 bottles of 375 ml. each, or 18 bottles of 500 ml. each or 12 bottles of 750 ml. each, or 9 bottles of 1000 ml. each or 6 bottles of 1500 ml. each;

(ii) "purchase value" means the value at which the Kerala State Beverages (Manufacturing and Marketing) Corporation Limited purchases such liquor from the suppliers and in case any liquor is not purchased by the Kerala State Beverages (Manufacturing and Marketing) Corporation Limited, such value as fixed by the Commissioner of Excise, for the purpose of levy of duties as per the Abkari Act, 1077 (1 of 1077).".

11. Amendment of Act 29 of 2013-

In the Kerala Finance Act, 2013 {29 of 2013), in section 11

(1) in sub-section (1), the words "including that of dining halls" shall be omitted;

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

"Provided that cess shall be levied only once for wedding and connected celebrations in respect of the same bride and bridegroom.".

DECLARATION UNDER THE KERALA PROVISIONAL COLLECTION OF REVENUES ACT, 1985 (ACT 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 on and from the 1st day of April, 2014 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 the Government of Kerala for the financial year 2014-2015 as announced in paragraphs 13, 310 to 316, 318, 319, 326 to 334, 336 to 379, 381 to 386, 388, 390, 393, 395 to 397 of the Budget Speech 2014-2015, namely:-

1. The Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955 (Xn of 1955);

2. The Kerala Stamp Act, 1959 (17 of 1959);

3. The Kerala Plantation Tax. Act, 1960'(17 of 1960);

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

5. The Kerala Building Tax Act, 1975 (7 of 1975);

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

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

8. The Kerala Agricultural Income Tax Act, 1991 (15 of 1991);

9. The Kerala Value Added Tax Act, 2003 (30 of 2004);

10. The Kerala Finance Act, 2013 (29 of 2013).

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

Sub-section (2) of section 11 of the Kerala Motor Vehicles Taxation Act, 1976 (19 of 1976) proposed to be substituted by sub-clause (5) of clause 7 of the Bill seeks to empower the Government to prescribe the details and the manner of serving the notice to the registered owner or the person having control of the vehicle, by the authorised officer who had seized and detained such vehicle and the mariner of conducting the sale of such vehicle on non-payment of the tax due.

2. Section 4A of the Kerala Value Added Tax Act, 2003 (30 of 2004) proposed to be inserted by sub-clause (2) of clause 10 of the Bill seeks to empower the Government to prescribe the manner in which the appeals filed before the existing Appellate Tribunals under the Kerala Value Added Tax Act, 2003 are to be heard and disposed of by the Appellate Tribunals appointed under Kerala General Sales Tax Act, 1963.

3. Proviso to sub-section (1) of section 6 of the Kerala Value Added Tax Act, 2003 (30 of 2004) proposed to be amended by item (a)(ii) of sub-clause (3) of clause 10 of the Bill seeks to empower the Government to prescribe such conditions and restrictions subject to the issue of authorisation by the authorised officer for tax reduction in the sale of goods to defence personnel, ex-service men etc.

4. Sub-section (1) of section 6 of the Kerala Value Added Tax Act, 2003 (30 of 2004) proposed to be amended by item (a)(iii) of subclause (3) of clause 10 of the Bill seeks to empower the Government to prescribe the conditions and restrictions subject to which tax shall be reduced for the sale of furnace oil to coastal cargo vessel and also to prescribe the conditions and restrictions subject to which tax shall be exempted for the sale of goods to be incorporated in works of Kochi Metro Project under the Kochi Metro Rail Corporation.

5. Explanation I of clause (a) of section 8 of the Kerala Value Added Tax Act, 2003 (30 of 2004) proposed to be amended by sub-clause (5) of clause 10 of the Bill seeks to empower the Government to prescribe the form of the certificate to claim deduction in respect of amount paid to sub-contractors for execution of a portion of the work contracted, while paying tax at the rate of six per cent of the whole contract amount in a works contract.

6. The matters in respect of which notifications may be issued or rules are to be made are either administrative in nature or matters of procedure and are of routine nature. 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.

K. M. MANI.