• P1 eamble Sectwn!l
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THE KERALA FINANCE ACT, 2002
(Act 7 of 2002)
CONfENTS Short title and Commencement Amendment of Act 1 #of 1077 Amendment of Act 15 of 1963 Amendment of Act 23 of 1975 Amendment of Act 32 of 1976 Amendment of Act 15 of 1991 Amendment of Act 15 of 1994
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TI IE KER.t\LA Fl~ANCf AC'T. 2002*
ACT 7 OF 2002
An Au to gtve ejjeu to U'J ta111 /IIWncwl p1 O[JO\al\ o/lhe Gm·euzment of Kerctla j01 the Fuw/1( wl Yew 2002-03
P 1 e am b I e - W 11 r R 1 "s 1 t 1 s ex p e d 1 en t to g. 1 v e effect to c e r t a 1 n 11 n (} n c r a I pt oposals of the Government of Ketala fot th~ fmancml Yeat 2002-03
B1: tt enacted 111 the Fifty Th1rd Yea1 of the Repubhc of lnd1a as follo\\S-
1 Slto1 t fllle am/ Lummenu.:ment -( 1) I hrs Act mJy be CJ lied the Ker.1la FIll(} nee Act, 2002
(2) ltem (1) of sub-sect1on (2), Item (b) of sub-sectton (6) anc..f ~uh-sectron
(7) of sectron 3 of rh1~ /\ct. shc~ll be deem~d to ha\e Lome mto f01c~· on the 1st d..1y ot Apttl. 2002 and shall be 111 f01ce nil thL' 2nd day of Apnl, 2002. ~ub- ~cctiOn (4} of ~eltJOn 3 and ~t'CtiOn 6 or thl~ Act ~hall be deemed to hJ\e come mto lore~ on thL· 31st dJy ot March, 2002 and ~hJJI be 111 force till the 31 ~t day of M
come mto force on the 1 ~t day of Apttl 2002
• 2 ·fmemlment of.lu I of /077-In the Ab"Jn Act 1077 (1 ol 1077).- ( 1) m section 18. m sub-sl'Ctton ( 3 ),-
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(a) after Item (b) under the hcJdmg '"(2) Lll'\lllY ra,·· the follO\\II11g I tem~ and entnes shall respectively be m~crted, n..1mely -
"(c) \Vhen le" red m the form of a fee for licence for tht: sale ofF oretgn Lrquor (Forl·rgn made)
(r) m"holesalc
(u) m reta1l
(111) 111 hote b or rcstaur:Jnls
R~ 25 00,000 {Rupees T\\Cniy-the lak.h~) for a year or part thereof R~ 10,00.000 (Rupee~ Ten lalh~) for a year or part thereof
Rs 25.00.000 l Rup~ T\\ enry -fiv~ I.JI...hs) tor a year or p:~n thereof
•Recel'rcd tll\.' ;, :,')\.'Ot ol the GoH·rnor on the 1t)th d:t) ol Jul~ . ~00 :! ::~::J p~blbht.J .!l x!:: Ker-:!:1 l•:JZette L \tr.wnhn:u~ "'o 1115 dared :!9th Jul) 2Ut~
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(tv) 111 non-propne- Rs I 0,00.000 (Rupe~s tary clubs to tts Ten lakhs) for a year or membets part thereof
(v) 111 Seamen's and Rs 10,00,000 (Rupees Manne oflicer 's Ten lakhs) fot a year or clubs to ItS part thereof
members
(d) when levted tn the(1) Foretgn ltquor Rs 200 (Rupees Two form of gallonage (Foretgn made) hundred) per bulk htre fee other than beer
and wme
(2) For Foretgn Rs 25 (Rupees Twenty- Jl1()de be~1 and five) per bulk.lltte'', wm~
(b) under the headmg (2) Lu\.ury TJx", beiore the ''ExplJnatJOn", the tollowmg 'Not~' shall be mc;ettcd, namely---
"Note -The <.:\.pre~ston ·ror'-'tgn Lrqu01 (FOtetgn mJde)' m~Jns .my ltquot p10duced, mJmrf,lctuted, or blended and compounded abtoad and unpottt:d mto lnd ta by IJJH.i. ,m 01 ~ea ".
(2) 111 sectron 51, for the word~ and fi!!.llh~S "Code of CtrmtnJI Procedllle, ~ .
1898'' the tollowmg wot de;, figm es and bt ack.et~ shall be sub~tttuted, namely-
"Code of Crunmal P10cedure, 1973 (CentrJl Act 2 of 1974 )",
(3) aftet sect ron 66, the Jollowmg sectton shall b~ mserted, numdy-
"67 Powe1 to cumpozuul ufjei1U!5 tn ce1ta111 uoe\ --(I) The Commrs~tonet may tmpose a tine of R~ 10,000 (Rupees Ten thousand only) each on any per son 01 pet sons hold tng a hcence or pet mrt under tht: Act, tot the offence~ undet sectton S6 (b) of the Act for VJll()taon of ~t~ength of 1otr-tgn ltqum ht»yc .·1d the pt esLtJbed ltmn a~ mJy be fi'
(2) rhe CommlSSIOner mJy tmpose a fine of lh 25,000 (Rupee~ 1 v.entyw fivt> thou~and only) each on any pea son or per son~ holdmg J llcl"nce 01 ptt mtt under thrs Act for the vJOIJtton by way of re -<.onsututwn, altetat,aon or modt tic.Jt a on wtthout the per mass ton of the Comnus!)toner of any deed on the ~tl ength of wl11ch any ltcence ts g1.1nted "
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3 Amendm .. ·m of Au 15 uj 1963 -· Jn the Ket ala Gene1 al Sales Tax Act. 1963 ( 1 5 of 1963 ),-
(1) m sect10n 5, dause (a) ot sub~sectton (2c) ~ball be omitted,
(2) m sectton 5D,-
(1) m clause (a) for the words and figllle~ ·s\!llal No 108' the '"ord~ and figure~ ·~enal No 12 of the Ftfth Schedule' shall be substtruted.
(u) m the p1 ovtso to c lJuse (b) for the word and f1gu1 e~ · 3 I st March 2002" the word and figures "31st M
(3) 111 sect ton 7, 111 sub sect ton ( 1) - -
(a) m cl..1use (cJ) fm the \\.Old.., '"one hund1ed Jnd tifty pc1 ~o..t:nt'' the wo1ds "t\vo hundted perct:nt" !)hJll be substituted and .dtet the \\Ottb .. 1111med1ate pteced111g year" the \\Otd~. ·or the IJ'< pa1d lot the tmmedtJte
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ptecedmg year \\'htchever 1~ htghe1" !)hall be m:,el ted,
(b) the second and thud p1 O\ J!)OS shall be om1tted,
• (c) m the fourth provtso, fot the '' onh, ··or on the ba!)JS of the quantum of compounded tax fixed tot the prevtous year m acco1 dance \'vlth the second and~htrd provtsos as the case may be" the wotds "01 on the quantum of compounded tax fi'
Y shall be substituted,
(4) m sectton 17, tn sub·sectJOn (6). for the words ''four years", the words ·•five years" shall be substttuted.
(5). m sectwn 27 A, sub-sectiOn (2) shall b~ omitted,
(6) rn the Frrst Schedule,-
(a) m sen a I num~r 20, m ~olunm ( 4 ), for the figure ·t · the figurt: · 4 · shall be substttuted,
(b) senal numbe1 108 and the entnes agamst tt shall be omtttc!d.
(c) in senal number 115, m column ( ~ ). for the figure ·t · the figure
• ..t • 6!.1 be scbsuruted.; '
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(7) m the F tfth Scheduk,-
(a) altet set wl number II and the enlttes agamst 1t, the followmg ),.; s~ttal numbet and entt tes shall be mserted, namely - ··12-Pen oleum Products, namdy-
(a) lttgh Speed At the pomt 4 At the pomt 30 At the pomt 34 Dtesd Otl of Ftrst Sale of Second of Fu st Sale by an 011 Sale 111 the tn the State
Company State by Jn by a dealer
hable to pay 01l Company \vho ts !table
tJ'\ undet to pay tax
::,C~llOil 5 tO undl!t sectiOn
anothet otl 5 c'\cept whet e
Company the SJ Je IS by _{
,m Otl C.on~.u1y~
to Jnothel Oil
Company
(b) Ket oscne do 4 do 8 do 12 •
(c) Motor Spu tt do 4 do 40 do 44 mcludwg
Ltght Otesel •
Otl tLDO)
and excludmg0
Peuol AvtatlOn Tut bme Fuel -;< and I flgh SpeedI Dtesd Otl
(d) Naphtha do 4 do 30 do 34
(e) Pett ol other do 4 do 36 do 40 f than Naphtha ' • (t) Othet Peu o - do 4 do 26 do 30 leum pt oducts
not elsewhere
m~nuoned m
thts Schedule~
or 111 the Ft rst
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(g) Av1auon do 4 do 40 do 44 Turbme Fuel
mcludmg
avmt10n •
Gasolme
(h) l1qU1fied do 4 do 8 do 12 Petroleum
gas
(1) Lubncatmg do 4 do 24 do 28" • 011, Grease,
break tlwd,
transformer
011 and other
quench mg 01ls
(b) to senal number 12, the followmg ''Explanat1on" ~hall be mser ted, namely-
o "£rplmw!wn -For the purpose of senal number 12 above 'Oil Company' means Cochm Refinenes Ltd, IndJan 011 Corporation Ltd , Bharat Petroleum CorporatJon Ltd , Hmdustan Pettoleum Corporation Ltd . , Indo-Burma Petroleum Company Ltd , and mcludes such other company as the Government may by notlficatJOn m the Gazette specrfy m th1s behalf"
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4 Amendment of A c.t 2 3 of 19 7 5 -In the Kerala Ch1tttes Act, 197 5 (23 of 1975),-
(0 m sectron 3, for clause (b) of sub-sectwn (5)7 the followmg shall be substituted, namely-
''(b) m other cases 50 per cent of the net assets of the foreman Pro\ 1ded that nothmg contamed m thJs ~ub-sectron shall apply m case of any Chitty of \\ruch me foreman IS J company owned by lhe Go\-etnment of Kerala " ;
(2) m sect10n 4, after sub-sectiOn (I) the followmg sub-section shall be mserte~ namely-
"( 1) (a) \Vhere a ch1tty 1s registered outsrde the State and twenty per cent or more of the subscnbers are persons normally res1dmg m the State, the foreman of the chttty shall open a branch m the State and obram sanctwn and reg1stratron under the provrswns of th1s Act "
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5 Amendment of Act 32 of 1976 -In the Kerala Tax on Luxuttes Act, 1976 (32 of 1976), m sectton 4, m ttems (a), (b), (c) and (d) of sub-section (2), for the words "per person" the words "per room" spall be substituted
6 A mendmenr of Act 15 of 199/ - In the Kerala AgncultUJ al In com~ Tax Act, 1991 ( 15 of 1991 ), m sect ton 41. m sub-sect tOn (2) for the words .. five years", the wotds "stx years" shall be substlluted
7 Amendment of Act 15 of 1994 -In the Kerala Tax on Entry of Goods mto Local Areas Act, 1994 ( 15 of 1994 ),-
(l) after sechon 9A, the followmg sectton shall be msetted, namely- ' '98 Dr5po5al of detawed good5 -( 1) The owner of the goods 01 h1s rep1esentat1Ve or other person m-charge of the vehtcle or vessel who rmports goods menttoned m the Schedule to the Act shall stop the velm:le or vessel at the check post ot other pomt of entry Into the local area and the off•cet m charge of the check post or any othet officet not below the rank of Sale~ Tax lnspector/A~ststant Sales Tax Officer may, tf he fmds on venf1cauon of documents that the tmpOit of goods att1..1ct h..1blllt}' undet th1s Act 01 there 1s an attempt to evade tax under th1s Act, 1ssue nottce dtrectmg the owner of the goods or hts representative or the petson m-charge of the vehtcle or vessel reqUtnng hm1 to rem1t entry tax !table under thts Act
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(2) I( the ownet of the goods or hts representative or other person • m charge of the vehtcle or ves!>el does not remtt the requtred amount of ta\. wtthm 14 days from the date of stoppmg the veh1cle or vessel, the ~fficet not below the rank of Sales Tax Inspector may, by order, sreze the goods and forward the records to the Officer supenor to hm1 to pa~s order assessmg the tax hable under thts Act
(3) The offtcer to whom the records were transferred shall pas~ appropnate ordets and dtrect the ownet of the goods to renut the tax assessed af any, wathm 30 days
(4) If the tax assessed rs not remitted wtthm the penod ment10ned m the order, the goods setzed under sub-sectwn (2) shall be sold by the offtcer who assessed the tax by publtc auctron to the haghest b1dder and the sale proceeds shall be rem1tted m the Governmt:ut Treasu1 y
(5) If the goods se1zed are of a penshahle nature 01 subJeCt to speedy and natural decay or when the expenses of keepmg them fn custody are l1kely to exceed the1r value, the officer m charge of the nottfied area shall 1mmedJately sell such goods or otherwtse dtspose of them and remtt the sale proceed~ of such goods or the amount obtamed by the dtsposal of such goods othet w1se than by sale m the Government Treasury",
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(2) m the Schedule, after senal number 25 and the entnes agamst It, the followmg senal numbers and entnes shall respectl\·ely be mserted, namely-
"26 Eleen 1cal goods 2 7 Water supply and samtary eqmpments and fittmgs 28 011, edible and medible, mcludmg refined and hydrogenated 011 and marganne
29 Tunber
30 Gtamte metal, chips and powder
31 Ready m1x conciete
32 Fans. G1mders, Cookmg tanges, \Vater heaters, ElectJical wtrmg cables and ACSR Lonductors
33 Lt\ c chtckcn and meat
34 Petroleum p:·oducts. namely-
(1) H1gh speed diesel otl
(11) Kerosene
(m) Motoi sp111t mcludmg Ltght D1esel 011 (LDO) and excludmg petrol:
• a' tatwn rurbme fuel and h1gh speed d1esel ml (tv) Naphtha
(v) Petrol other than ~aphtha (vt) Othe1 petroleum products not else where mentioned m thts Schedule or m the F1rst or Second or Ftfth Schedule of the Kerala General Sales Tax Act
(vn) A\ muon Turbme Fuel mcludmg :\\ tat10n Gasohne (vut) Ltq\tJficd Pet1 oleun1 Gas
(LX) Lubncatmg OJ!, Grease, Brake Flu1d, T1ansformer 011 and othe1 Qucnchmg Oil~ ". '
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