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Preamble Sectio1'tS
99
• THE KERALA FINA~CE ACT, 1934 (Act 17 of 1984)
CO~TENTS
1. Short title and commencement.
2. ..\mcndmcut of .\ct IS of 1963.
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100
THE KERAL·\ FINA:'\CE -\CT, 198~ (Act 17 of I <)84)
All Act to gwe e.ffat to the fmrmczal proposals of the Go,'t'llllnmt of J(era!d j01 the /inmzczal )'ear I 984-85.
Prtamble -WHcRt:AS 1t ts C\.pe.-hcnt to give efTect to thl"' Gn,tncial propo- s.lls of the Government of Kcrala for the fmanetal year I
1 Short tztle a11d commencement -(I) 'l'lm Act may he called the Kcrala Fmance Act, 1984.
(2) Itshallbedecmcdtohavccome mtofmcconihc l~tdayol \pni, I 984. _
2. ~ Ammdmmt of Act I,:-, of I 963.-ln the Ket aLt Genet a! S,tle~ Tax , \ct, 1963 (I5·of 1963),-
(t) m sectwn 2,-
(a) in clause (vm),-
(A) in the openmg paragraph, after thr w01 d~ "or dtstnbutmg~ goods", the wotds "cxecutm~ v.:orh.s contract, tran~fernng the trght to use anv ~ood~ 01 ~upplymg by way of 01 as pa1 t of any sct \ Jcc, anv goods" -,hall be msertc'd,
(B) in ~uh-clausc (c), after the words 'or dt;tnbutmg goods", the words "executing works contract, tl dnsfcrrm~ the nght to usc any goods or ~upplymg by way of 91 a~ part of any set vtce, any goods,'' ~hall be mse1 ted,
(C) m sub-clau~c (d), f01 Chc wmd "as-,octatwn", th<· word~ ",t~so- ctatlon or body of persons, whether mcorpordted or not" '>hall be sub<;tttutcd,
(D) after sub-clause (e) ami b<:_fotc E"
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"(f) a person who, whether m the course ofbusmess 01 not,-
(1) transfers any good~, includmg contzolled goods, whethe1 111 pnr- ~uance of a contract or not, for cash 01 dcfetted payment 01 other valuable consideration·
• Recetved the assent of the Govemor on the 28th day of.:July, 1984, and pub- lished m the Kerala Gazette Exu·aordinary No bG2 dateu the 28th
• .July, 1984. '
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(2) transfe1 \ property in !Sood<, (whether as ~oort~ or 111 ~.)l!Jf. Otl•r, form) mvolved in the exccut10n of a work~ contr~ct;
-..,/ (3) delivc1s ,\llY goods on hire-putcha'>e or any ~y~tem of pavment ......_ , by instalments,
(4) ·u·ansli~rs the nght to me any go:>d~ for any pu•po!>t: (whether or not f01 a speeifird penod) 1'01 ca~h. ·deferred payment or other valuable con~ide1 a tiOn ,
(5) \uppiJe~, by way of or a' part of any '>Crvtcc 01 1i1 any other manner whatsoever, ~ood~, bC!Il!j food 01 any other arl!cle for ht.rtnan con- sumption or any dnnk (whether or not into'-!cattn~), where ~uch supply or service is fo1 cash. defc1 red payment or other valuable constderaiton ",
(E) m Exphmal1on (1), fm the words "an association'' tlu; wotd' ''.m assotiatwn or body of persons whether mcot porated or not" '>h.tll he '>llb- tituted,
(b) . 111 c.Jausc (xu), aftct the wOLd~ ''used 111 the", the word~··'eon- struction, fitt111g out Improvement or repa1r of 1mmovablr p10perty or med in the" shall be inset ted ,
.
(c) in clause (-, .. vui), for the woll.l' '·purcha~e~ or ~ells g-ood,", the ''ord-; "canies on bu<;tne~s'' shall be sub,tttutecl, · ·
(d) 111 clau<;C (xxi),
(A) after the words ' eve.! y tt ansli·t:·', the words "whether In pur,u- ance of a contract or not'' shall be mserted
•
(B) in ExplnMlton (2'), for the words "any a'>soctattOn ., , the word
"any association or body of pcr~om, whether mcot porated or not" ~hall br .,ubstituted, ,
(C) m n'xplmwltoll (3)' the followmg word~ shall be added at the end, namely:-
"on the date of dell\·ery of the goods m punuance of the a~reemcnt of ~uch hire-purchase or oth•·r sy~tC'm of payment Ill m~talmcnt<> ",
(D)
namely.- after '!i:Aplan'llzon (3), the followmg Explanatwns shall be m~erted
•
"l~xplanalton 3( <\) -A transfrr of propet ty m good~ mvr>lv!·d m the c"Xe- cutiOn of a works contract '>hall bs; deemed to be a ~-~re • . Explanatwn (3B) -A tramfc:1 of nght to use anv good' for a.ny purpose (whether or not fol a o;pcc1fied penod) for CJ.sli, deferred payment or other valuable consideratiOn, shall be rleemed to be a ~ale.
3
102 • Exjl!rmq/zon (bC) -o\.ny supply, by wa~ of or as part of any service for in . any othc-1 manner whatsoever, of good~, bemg food or any other article for human comumptton or any dt mk (whether o1· not intoxicating), wh«"re sue h supply or ~c1 vtce ~~ for cash, delerrt>d payment or other valuable 'lr""
on~tdet atwn, ~baH be dec mer! to be a ~ale.
#
Rxp!rmatum 13D) -Cnlc~~ otherwtse exprc,sly provided 111 thi~ Act a,1y transfer, dehvn y 01 ,~;·pply of any goods refc1red tom this clau~e shall be deemed to be a sale of tho~e goods bv the per~on makmg the transfe1, deli- very or supJ~ly and pnrchase of those good~ by the person to whom surh tJ'.tJlSfer dcbvct y or ~upply •~ made",
( <;) 111 clause (xxvu)
shall be in~erted, namely - '·t.xplanatwll (I.\) -(1) The turnovc1 111 respect ofworks contiact shall be the a~Sgregatc· amount 1 ccetvrd 01 1 cceJvablc by the df'alct for call ymg out ~uch ron tract less s11clt po1 t10n rrpt c~rntli1!S labour chatge~ a~ may be p rcscn l£d ; -.::
(11) The till novn Ill rc;.<,pect or dehvcry of goods on hire-purchase ot on any svo,tem of payment by 1mtalmrnts shall be the market pnce of the goods '\O dehvered.
(111) The tu1 novet 111 rc,pect of tit\! transfe1 of the right to use any 1 h- gooch sholl be the aggtcgate amount rccc1\ed 01 Ieccivdble by the dealer a.'J consJderatJon fo1 mch transfct ",
" (f) after < Ia usc ( \..
" (x xtx a) "works contract" includt>s any agreement for catTying out fm cash or ftH deferred payment 01 other valuable consideratiOn, the construc- tron, fittm£?; out, 1 mpt ovcment, 1 epau • manufactu1 ~. proccssmg, fabricatJO!l, etectron. m~talldtJOn modrficat10n 01 cOJnmissJOning, of any movable cr Immovable property ., .
(n)
(a)
( ,\)
rupees", the
(B)
omitted, m section 5,- m su b-,~ection (I),- m the opening paragiaph, fm the words "se'vcnn-five thousand wo1d~ "one lakh rup~es" ~h-1ll l>e' substituted; . . in dau~e (t) the \\'Old ·'and" occurnng at the end shall he (!:) for claus"e (u), the followmg clauses shall be substituted namely-
' (11) in the case of goods not specihed in the First or Second Sehcd11l!::
•nd not commg under clause (tiJ), at the 1 ate of five per cent at a 11 points or aale; and ·
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103
(iii) in the case of transfer of the nght to use any ~oods for any purpose (whether or not for a ~pecdled penod), at the rate or five per cent at all pmnts of such t1 ansfer on an aggregate tut nover or hlty thousand rupees and above ",
(b) in sub-sect1on (2), for the words "twenty-five thousand rupees"; the words "fifty tho11~and rup~s'' shall be ~ubstttuted , (tii) in section 5A,-
(a) in sub-sect10n (2),-
(A) for the words "seventy-five thou~and rupees", thf! words "one I akh rupees'' shall be substituted;
(B) in the proviso, for the words "twenty-five thnusand rupees", the word:, "fift)' thousand rupees" shall be >ub~~.t;..ted. ,
(b) in sub-section (3), for the wo1·ds "sevrnty-fivc thousand rupees:' and "etghty thou:,and rupees"; the word~ " one lakh rupees" and "one la.kh ar\d ten thousand 1 upees" ~hall, re~pecttvely, be sub~t1tuted, (1v) in sub-sectiOn (I) of sectwn 7,-
(a) for the words "seventy-five thousand 1 upees'' and "e•ghty , thousand rupees", the wnrds "one lakh rupees· and 'onr lakh and ten tl1'ousand rupees" shall, respectrvely, be subst1tuted,
(b) for the words "two per cent'', the wo1 ds ''two and a hall per cent" shall be substituted;
(v) in section 13,-
(a) m sub-section (1), fm the wotds '\evtnty-five thousand rupees"
the words "one lakh rupees· shall b~ ~ubstituted,
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(b) in sub-sectiOn (2), for thr wm d~ "twcnty-fi,ye thousand rupees", the words "fifty thousand rupees and every dealer !table to pay tax under clause (in) of sub-section (I) ofscctwn 5' shall be sub~t•tutcd,
.....
(vt) Ln 'SCCtion_l7, in sub-section (4), for the fu,tjltOVISO the rolJow- lllg pwviso shall be substituted, namely.-
"Provided that the prov1sions of th1s sub-sectJOn ~hall not apply tf the tax due as specified in the return 1:, less than the t.:~.x a~s<>ssed accordmg to ' -the latest completted asse:,smcnt by more than twrnty-five per cent:", (vii)
namely:-
after sectton 19A, the followmg ~cct•on ~h.lll be mscrted,
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"l9B. ··Assessment in case cifunder valuatwn-(l) Ir the as~es~mg autho- rtty, is sati~fJed that a dealer has, with a view to evade the payment of tax,
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104
shown m his account>, sale or purchast> of any goods at pttccs lower than th<- prevathug market p1tcc of such good~, 1t m..1y estunatc the value of each good~ on the basts of the prev,uhng market pnce and assess or reassess the ~ dealer to the best of its judgement, aftt>J makmg such enqlllry as~t may constder ·r- necusaJ v and after aflo1 dmg the deakr .:t 1 c<.~~onable opportumty of bemg he:11U
(2) The ptovt~ton~ ofsub-!>cctwm (2) to (4-) o! ~cctmn ]q ~hall appl~ to the as~essment or rea~~e\'iment undt>t ~u b-~eetwn (I) ", (vm) m ~eclton 22, .m ~ub-~ecuon (1), the words ''and pay ovet the same to the Government 111 the mannet pt C<;CJ dJL~d ' ~hall be added at the end;
(tx) aflet section 30 the f?llowmg ~ecuon ~h..tll be tmertcd, n.:tmely -
"30/\ Procedure for tram port of noltjied p,oodr -(I) The duver o1· othet person m chargt" of a wh1clc or vessel ~hall stop thr \rill de 01 vessel at any place \\hen so rcqULred by any officet, autho11sed by the Govetnment m tht~ behalf, lor the put pose of enablmg 'iuch oA1cer to vcnfy \yhether the goods a1 (, hcmg tran .. pm Led m contt aventton of 'iub-~ectJOn (I) of sectton 30
.
(2) If, on venlicauon, ~uch oAlcer ha~ 1 ea'ions to ~USJ?eCt that the good~ are bemg ttan::.ported m contrd'ventton ofsub-~ccuon (I) ofsectton 30, he may, for reasons to be tet.mded m wntmg, dctam the good~ and shall pto- ceed m accordance WLth the pt ovt,lon' of 'ectwn ~9A ' .
(x) Ill sectiOn 34, 111 ~ub-~ectwn '( l) ,- (aT after the wotd, figutes and lettc-1· figure> ,md lette1 "sectwn 19B" 'hall be tmcrted, ' ~ectton 19A" .
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the word
(b) for the word~ figute '01. ~eetJon 30'', the wo1ds, figme~ and lctll'l "sectiOn n 30 or section 30 _\",hall be .,.,,b<;tllut4·d. ' (e) m the ~ecoHd provt~o, <.~ft rr the word awl figun-:, "~4·ct lOll I9' the wo1d~, figure~ and letter "or ~ct.t1on I9R '~1!,111 be mserted (x1) m the Fmt Schedule,-
( I) afte1 Sen a! Number I 0 and the enutc~ t~Lltlng thet cto, the tollow- mg Sen a I Numbe1 s
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"I 0 \ Flour not mcluded 111 the St•cond Schedule
lOB Venmcellt, ada ami ~em1a .\t tlte pomt of first sale 111 the State by a dealet who
~~!table to t.tll. under ~ecnon 5 4 do 8"·
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(2) after Serial Number 15 and the entries relating threto \he following Serial Number and entries shall be inserted, namely:_.:.
"16. Dried fruits \
At the point of first sale in the State by a dealer who is liable to tax under section 5 8" I _ !3) after Serial Number 19 and the entries rdatmg thereto the following Serial Number and entries shall be inserted, namely:-
"19A. Saccharine At the point of first sale in the _State by a dealer who IS liable to tax under section 5 10"· I
(4) after Serial Number 20 an~ the entries relating thereto the following Serial Number and entries shall be inserted namely.-
"20A. Sweets not elsewhere mentioned in
this Schedule
At the point of first sale in the State by a deale~ who is liable to tax under section 5
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(S) in the entry in column (3) against Serial Number 21, for the word "sale", the word "purchase" shall be substituted. ~ .
(6) after Serial Number 26 and the entries relating thereto, the followiQg Serial Number and entnes shall be mserted, namely:-
"26A. Compounded asafoetida At the point of first sale in the State by a dealer who 1s hable to
tax • under sectiOn 5 8";
(7) after Serial Number 28 and the' entries relating thereto, the following Serial Number and entries shall be inserted; namely:-
"28A. Cocoa At the point of last purchase · in the State by a dealer who is liable to tax under sectiOn 5 6,.;
(8) for the entries in column (2) agamst Serial Number 42, the follow· ing shall be substituted, namely:-
"Artificial s1lk yarn, synthetic polyester fibre, .... polyester fibre yarn and staple fibre yam"; 34/3458/MC.
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106
(9) after Serial Number 46 and the entries relating thereto, the follow- ing Serial Number and entries shall be mserted, namely:-
"46A. Stainless steel rods and sheets At the pomt of first sale in the State by a dealer who
is liable to tax under
section 5
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(10) .after Serial Number 47 and the entries relating thereto, the following Serial Number and entries shall be inserted, namely:-
"47A. Scented arecanut At the point of first sale in the State by a dealer who
1s liable to tax uhder
·section 5 8"·
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(11) after Senal Number 49 and the entries relating thereto, the following Serial Numbers and entries shall be inserted; namely·-
"49A. Ganja and opium At the point of first sale in the State by a dealer
who is liable to tax under
section 5 50
49B. Soap stone do. 8
49C. Sandalwood and sandalwood chips do. 6 49D. Betalleaves At the point of last purchaSe in the State by a
dealer who 1s hable to tax
under section 5 5
49E. Ayurvedic herbs do. 5"·
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(12) after Serial Number 56 and the entries relating thereto and before the Explanatzon thereunder, the following Serial Numbers and entries shall be inserted, namely:- · ·
"56A. Asphalt (Bitumen) "At the point of sale in the State by any oil com-
pany hable to tax under
section 5, except where
the sale 1s by an oil com-
56 B.
56 C.
56 D.
Shell Hexane White Ou
Spr~yOil
pany to another oil .com- pany.";
do.
do.
do.
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56E. Process Oil - "At the point of sale in the State by any oil com-
pany liable to tax under
section 5 except where the
sale is by an 01l company
to another oil company."; 8
56 F. Jet Petrol do. 4 56G. Mmeral Turpentine do. a· '56 H. Solvent 1425 do. 8
561. Cutting Oil do. 8 56]. Solvent Oil .. do. 8 ' 56K. Paraffin wax do. 8 . 56L. Low sulphur heavy stock do. 8 . do. 8"·
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56M. Glass cleaner'
(13) in the Explanation below the entries relating to Serial Number 56 for the figures "56", the figures and letter "56M" shall be substituted; I -+- ( 14) after S~rial Number 58, and the entries relating thereto, thtt
• following Senal Numbers and entries shall be inserted, namely:-
.~ ' "58 A. Hydrogen Chloride At the point of first sale in the State by a dealer who
IS hable to tax under
section 5 7
58 B. Methane do. 7"· '
( 15) for Serial Number 61 and the entries relating thereto, the follow- ing Serial Numbers and entries shall be substituted, namely:-
"61. Caster oil
61 A. Marot1 oil
61B.
6IC.
6ID.
Pine oil
• ·Eucalyptus oil All other edible oils including refined or hydrogenated oil and margarme except coconut oil At the pomt of first sale in the State by a dealer who is liable to tax under section 5
do.
do.
do.
do.
5
5
5
5
6";
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(16) after Serial Number 70 and the entries relating thereto, the following Serial Numbers and entries shall be inserted, namely:- •
70A.
70B.
70C.
Chalk powder Sagol1ime product Sulphur
At the point of first sale in the State by a dealer who is liable to tax under section 5 do.
do.
6
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( 17) in the entry in column (2) against Senal Number 72, the words
"white oil" shall be omitted;
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(18) after Serial Number 80 and the entries relating thereto, the following Serial Numbers and entries shall be inserted, namely:-
"80A. Shavmg sticks, shaving creams BOB. Raw Bathis At the point of first sale m the State by a dealer who is hable to tax under section 5 do.
10
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(19) after Serial Number 84 and the entries relating thereto, the following - Serial Number and entries shall be inserted, nflmely:~ -~
"84A. Orgamc manure At the point of first sale in the State by a dealer who is
hable to tax under section'S 4"·
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(20) after Serial Number 96 and the entries relating thereto, the follow- • i ng Sena!' Numbers and entrie~ shall be inserted, namely:-
"96A. Cork and cork sheet At the poin~ of first sale in ~6B. Linoleum
96C. Packing cases
96D .. Wooden boxes
96E. Shooks
96F. Wood shavings
96G. Particle boards
the State by a dealer who
is liable to tax under secton 5 8
do .
• do. do. do. do. do.
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(21) after Serial Number 97 and the entries 1 elating thereto, the following Serial Numbers and entries shall be inserted, namely:-
'9 7A. Map At the point of first sale in
the State by a dealer who is
ha ble to tax unelersection 5 8
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97B. Printed materials other At fhe point of first sale in than journals and books the State by a dealer who is meant for readmg liable to tax under section 5 8 97C. Old newspaper do.6
97D. Paper cuttings do. 6 . 97E. Toilet paper do.10 97F. Playing cards do. 10"· •
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(22) after Serial Number 100 and the entries relating thereto, the follow- ing Serial Numbers and entries shall be inserted, namely:- . -
"100 A. Gunny bags At the point of first sale in .• the State by a dealer who is
liable to tax under section 5 8
lOOB.
IOOC.
Pilecarpet do. IS P.V.C. Cloth, water- proof cloth, tarpaulin and rexine do.8"· '
(23) after Serial Number 101 and th'e .entries relating thereto, the following Serial Numbers and entr~es shall be inserted, namely:-
"lOlA. lOlB. lOIC. Beds, mattresses and pillows made of cotton
• Cotton waste Cotton yam waste At the point of first sale in the State by a dealer who is liable to tax under section 5 do.
do.
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6 "· ' · (24) for the entry in column (2) against Serial Number 105, the following shall 1M: substituted, namely:- "Glazed tiles, mosaic tiles, mosaic chips, marble tiles, marble slabs and chips" ; (25) after Serial Number 105 and the entries relatmg thereto, the following Serial Numbers and entries shall be inserted, namely:- '105A. Cuddappah stone and At' the point of first sale in slabs the State by a dealer who is liable to tax under section 5 15
10 5B. Mica do. 15"· • \
(26) after Serial Number following Serial Numbers and
•'IliA. Glass sheets, wired glass and rolled glass Glass rods
110
III and the entries relating thereto, entries shall be inserted, namely:-
At the point of first sale in the State by a dealer who is liable to tax under section 5 10
10
the
111B.
l IIC. Glass capillaries do.
do. 10";
(27) after Serial Number 114 and the entries rolating thereto, 'following Senal Number and entries shall be inserted, namely:-
•' 114A. Gas meter At the pomt of first sale in the
the State by a dealer who is
liable to tax under section 5 8"· '
(28) after Serial Number 116 and the entries relating thereto, the following Serial Numbers and entries shall be inserted, namely:-
"116A. Copper At the point of first sale in the State by a dealer who is • 116B. Zinc
ll6C. Manganese
116D. Brass
ll6E. Bronze
Il6F. Magnesium
liable to tax under section 5 8 do. 8 . ·a
8
8
8
116G. Ferrosilicon do.
do.
do
do.
do. 8"·
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(29) after Serial Number 121 and the entries relating thereto, dae following Serial Numbers and entires shall be inserted, namely:-
~~'121A Metal scraps other than At the point of first sale in those specified in the' the. State by a dealer who is . Second Schedule liable to tax under section 5 6 121B. Concrete poles do.
(30) after Serial Number 13 7 and - the entnes relating thereto, : following Setial N umbe_r and entnes 'Shall be mserted, namely:-
"l37A. Used-up storage batteries 8";
the
sold as scrap '
At the point of first sale in the State by a dealer who is· liable to tax under sectiOn 5' 10";
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(32) after Serial Number 153 and the entries relating thereto, following Serial Number and entnes shall be inserted, namely:-
the
:., "153A. Articles made of ivory,
horn, rosewood, sandalwood,
coconut shell and straw
At the pomt of first sale in
the State by a dealer who 1s
hable to tax: under section 5
:-:f
10"·
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(33) after Serial Number 159 and the entries relatmg thereto, the following Serial Number and entries shall be mserted, namley:-
"159A. Instrument boxes At the pomt of first sale in the State by a dealer who is
hable to tax under section 5 5" .. ,
(34) after Serial Number 160 and the entnes relating thereto, the following Serial Numbers and entnes shall be inserted, namely:- ·
"160A. Carbon paper, type At the point of first sale in carbon, stencil paper the State by a delaer who is liable to tax under section 5 8
160B. Typewriter ribbon do. 8". I
(35) for the entry in column (2) against Serial Number 165, the followmg shall be substituted, ,namely:-
"Umbrella and parts thereof";
(36) after Serial Number 170 and the entires relating thereto, the following Serial Numbers and entires- shall be added, namely:-
171. Shellac At the point of first sale 9t the State by a dealer who is
liable to tax under section 5 8
172.
173.
174.
175.
\
Rosin Fibre glass Fevicol
,,
\ . do. do. do.
8
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~ 176.
177.
Gum and glue Resin
Goat hair, raw wool, wool tops, woollen knitting yarn and w1gs
do.
do.
10
8
8
8
178. Fur and articl~ made of fur do.
do.
6
6".
,
13