Kerala act 011 of 2017 : The Kerala Finance Act,2017

© Reg". ^NuKERBIL/zolz/45073 name Mm";

dated 5-9-2012 um. RNI Govcmmenl of Kcmla

Reg.No.KL/TV(N)1634/20l5-l7

1

2

ACT ^11OF2017

THE KERALA FINANCE

ACT,2l)l7 An Ac! ^In

give effect ^tocertain

financial prapoxulx

nf

the Government!

(If

Kemlufiw

llu'

Financial^{Year 20]}7-30I8t Pt'cunzhlu.7thI-:RI-.As. it ^is

expedient ^to

give

effect^tocertain financial proposals ^oftheGovemment^ofKcrala^fortheFinancial ^Year

20l7-2018:

Bt-z it enacted in the

Sixty-eighth

Year of the

Republic

of India^as follows:—

1. Shaw til/c

and

cantmcncunth——(l)

This

Act may be called the Kemla

Finance

Act.

20l7,

(2) ^Saveasothenvise

provided ^{inthis Act. it}shall ^bedeemed to have ^comeinto force ^onthe lst

day

of

April.

2017,

2. Amendment

qucI

l7

({1'1959.Aln

the Kerala

Stamp

Act,

1959

(17 ^of

1959),;

(l) ⁱⁿsection ^2.

(a) ⁱⁿclause ^{(e). forthe}

words ^"anadhesive ^or

impressed stamp". ^the

words^and

symbols ^"anadhesive, impressed ^or

e-slamp"

shall^besubstituted:

(b)

after

clause ^{(6). the}

following

clause shall^beinserted' namely?

"(ea) "e-stamp"

means an electronically generated impression

issued ^{by the}Government^ofKerala to

denote ^the

payment

of

stamp duty;";

(6)

alter clause

(p), ^the

following

clause shall^beinserted. namelyti

"(pa)"Registcring

Officer"

means^theofficer

appointed under

section^6ofthe

Registralion

Act, ¹⁹⁰⁸

(Central Act XVI

of

1908);";

(d) ⁱⁿ

clause

(qq).*

(i) ^forthewords

"mark, ^sealorendorsement". ^the words and

symbols

"mark.

seals endorsement.

impression ^or

e—stamping"

shall be

substituted;

(ii) ^forthewords "adhesive^or

impressed

stamp" ^the words and

symbols

"adhesive.

impressed ^or

e-stamp"

shall

be substituted:

(2) ⁱⁿsection ^{10. in}clause

(b) ^ofsub-section ^(2).

afier ^thewords

"impressed stamps", ^thewords^and

symbol ^"or

e-stamps"

shall

he

insened;

(3)

after

section ^{10A, the}

following

section shall ^be

inserted, namely:—

"lOB,

Appointment ofCenlru/

Record

Keeping

Agency.~ The Government may. by

notification in the Ofiicial Gazette. appoint ^the

Department ^ofTreasuries ^asCentral Record Keeping Agency

which shall^havesuchduties^andfunctions as

may be

prescribed,

regarding

issue of

e-stamps.";

(4)

after section

12, ^the

following

section shall ^be

inserted. namelyii ^v

"lZAt

DcftlL'Umt'Hl Off-.flamp.'(l)

Any e-stamp

in ^an instrument shall be defaced

through

online verification

system by ^the

Registering

Officer ^{or any}other officer authorised

by the

Government. in such

manner^as

may be

prescribed, ^sothat the same cannot be used

again.

(2) Any

instntment

bearing ^an

e—stamp

which^{has not} been defaced. ^sofar ^assuch

stamp ^is

concerned ^bedeemed to be

unstamped.";

(5) ⁱⁿsection^13:7

(a) ^inthe

marginal

heading,

after^thewords

"impressed stamps", ^the

words^and

symbol ^"or

e-stamps"

shall ^be

inserted;

(b) ^inthe

existing provision'

after^the

words

"impressed stamp". ^the

words^and

symbol ^"or

e-stamp"

shall

be

inserted:

(6) ⁱⁿsection

47.

after^thewords

"impressed stamps"

the words and

symbol

"or

e»stamps"

shall be

insened:

(7)

after

clause

(a) ^ofsub-section

(2) ^ofsection

69.

the

following clause shall

'be

inserted. namely:~

"(z\a) ^themanner^of

payment ^of

stamp duty

and

refund thereof

by e-payment".

3.

Amendment

afAct

[5

n/

[963.7 In

the Kerala General

Sales Tax Act.

1963

(15

of

1963).

in section 238.7

(a) ⁱⁿ

sub-section

(3). ^forthe

words and

figures

"28th

February.

2017",

the words and

figures

"3lst

December.

2017"

shall be

substituted;

(b) ⁱⁿ

sub-section

(4), ^forthe

words and

figures

"28th

February.

2017",

the words and

figures

"Slst

December.

2017" shall be

substituted:

'

(c)

after sub-section

(8). ^the

following

sub-section

shall be inserted nan

telyzi

"(9) ^Ifthe

dealer^hadfiled

option ⁱⁿ2016-17

but failed to remit the entire amount as

per this

section.

the amount

paid

under the earlier

option

shall be treated as amount

paid

under the new

option".

4'

Amendment

quct

.i.'

of

I976

iln the Kerala

Tax

on Luxuries Act, 1976

(32

of

1976).

for section

103,

the

following

section shall be

substituted.

namely:7

"1013.

Reduction

of

urrcm'x in certain

t'u.re.\'.7( 1) Notwithstanding anything

contained^{in thisActor}

rules^madethereunder or in any judgment.

decree or order

of any

court. tribunal or

appellate authority. ^anassessee ^whoisinarrears^oftaxor

any other amount^due under this Act

reialing

to the

period up

to and

including

315!

March. 2011. may opt

for

settling

the arrears^on

payment

of the

principal

amount of^tax in arrears and

thirty per

cent of

penalty

amount.

by availing

a

complete reduction of the interest on the tax amount

and interest on the

penalty amount, a

5

(2)

Notwithstanding anything

contained^intheKerala Revenue Recovery ^{Act. 1968}

(15 ^of

1968)

reduction^ofarrears under sub-section

(1)

shall^be

applicable ^tothose casesⁱⁿ

which revenue

recovery proceedings ^havebeeninitialed^andtlte

assessing

authorities shall^have the power

to collect such amounts on settlement

under sub-section

(1)

and where the amount is

settled under sub-section

(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) ^Theassessee shall withdraw^allthecases

pending

before any appellate ^orrevisional

authority.

tribunal^orcourts for

opting

for settling ^thearrears under ^thissection.

(4) ^Allarrears

including ^taxand

penalties

pertaining ^toa

year shall be

settled

together

under this

section.

(5) ^Anassessee^whointends^to

opt ^for

payment ^ofarrears under subsection

(1)

shall

submit an

application

to the

assessing authority on or before 30th

September.

2017.

(6) ^Thearrears^forthepurpose^ofsettlement under^this section

shall be calculated as on the date of

submission of

application. (7_) ^On

receipt ^ofan

application

under

sub-section

(5),

the assessing

authority

shall

determine^theamount^oftaxandother amounts due

from the assessee

under sub-section

(1)

and shall intimate the same to the assessee, and

thereupon

the assessee shall

remit the amount in

equal monthly

instalments^onorbefore^Slst

December.

2017:

Provided that an

assessee who

opts

to settle his arrears under subsection

(1)

has

remitted any

amount

relating

to

the arrears for obtaining ^a

stay

voluntarily ^or

by way^ofan

order^ordecree^or

judgment passed by any

court^or

tribunal^or

appellate authority ^andifthe case is pending

before^such

authority. ^theamount^so

paid

shall^hetreated as

that paid

under ^this

option.

(8)

There shall^notbeany refund

subsequently

for the amount settled under this

scheme.

under any circumstances.

b

5. Amendment

quu

[5

uf

[991.711] the Kerala

Agricultural Income Tax

Act.

1991

(15

of

1991)

for section

37C,

the

following

section shall

be

substituted.

namely:~

"37C. Reduction

Q/arrenm

in vermin

cast/514])

Notwithstanding anything

contained^inthisActorrules^made

thereunder^orinany judgment. decree or order of any court. tribunal or

appellate

authority.

an assessee who is in arrears of tax or

any other amount due under this Act

relating to the

period up

to and

including

3151

March, 2011, may

opt

for

settling

the arrears on

payment

of the

principal

amount of tax in arrears and

thirty per ^centof the

penalty

amount

by availing ^a

complete

reduction of the interest on the tax amount and on the

penalty

amount;

(2)

Notwithstanding anything

contained ^intheKemla Revenue Recovery ^{Act. 1968 (15 of}

1968),

reduction^ofarrears under sub-section

(1)

shall^be

applicable ^tothose casesⁱⁿwhich revenue

recovery proceedings ^havebeeninitiated^andthe

assessing

authorities shall ^have the power

to collect such amounts on settlement under

sub-section

(1) ^and where the amount is settled under sub-section

(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

ot' any collection

charges.

(3) ^Theassessee shall withdraw^allthecases

pending

before any appellate ^orrevisional

authority.

tribunal^orcourts for

opting

under this section.

(4) ^Allarrears

including ^taxand

penalties pertaining ^{toa year} shall ^besettled

together

under ^thissection.

(5) ^Anassessee^whointends^{to opt for}

payment ^ofarrears under sub-section

( 1)

shall submit ^an

application ^tothe

assessing authority on or before 30th

September.

2017.

(6) ^Thearrears^forthepurpose^ofsettlement

under^this section shall be calculated ^{asonthedateof}submission^{of the}

application.

7

(7) ^On

receipt ^{of an}

application

under sub-section

(5). ^the assessing authority

shall determine ^theamount^oftaxandother

amounts due from ^theassessee under sub-section

(1)

and shall intimate the ^same to the assessee, and

thereupon

the assessee shall remit the amount in equal monthly

instalments^{on or}before^3lst

December.

2017:

Provided that^anassessee who opts ^tosettle his arrears under ^sub- section

(1)

has

remitted any

amount

relating ^tothe arrears for

obtaining ^a stay voluntarily ^or

by way of^anorder^ordecree ^or

judgment passed

by any

court^ortribunal^or

appellate

authority

and if the^caseis

pending before such

authority.

the amount ^so

paid

shall be treated^asthat

paid under this

option.

(8)

There shall^notbeany refund

subsequently ^fortheamount settled under this

scheme.

under any circumstances".

6. Amendment

rgf'AL-I

30

(5/'20047ln

the Kerala Value Added Tax Act. ²⁰⁰³

(30 ^of

2004):?

(l) ⁱⁿsection ^6.7

(a) ⁱⁿ

sub-section

(1).

atter^thenineteenth

proviso, ^the

following provisos

shall^be

inserted.

namely:7

"Provided also that the sale of

packing

materials

by

a

registered dealer to an

exporter for the purpose of use in the

packing

of

exported goods

shall^be

exempted ^{fromthetaxforthe}

period up ^to 315!

March. 20H).

subject

to the condition that the sale has been supported by ^'H'Forms issued under ^theCentral Sales^{Tax Act. [956} (Central ^{Act 74 of}

1956).

by ^such

exporting

dealer^andtax.^ifany. paid shall not

be refunded:

Provided also that the rate

of tax on works contract of

supply

and installation of solar energy devices.

equipments

and

plants

shall be one per ^cent

from lst

April,

2013 and^tax.if any.

paid ^at

higher ^rateshall^not be

refunded:

Provided also

that the

goods specified

in

item

(I)

of serial number

[34

of List A

of the Third Schedule shall be

exempted

from tax

for

the period ^from20th

December. ^2014to31st

March.

2015:

8

vaided also that the rate oftax of Mobile

Phone

Charger

sold

along with Mobile Phone

in a sealed

pack

shall

be

at

the rate

applicable

to

the goods specified ^inthe

Third Schedule^fromis!

April

2005:

Provided also that the rate of tax on

'bakery sltortening'

included under the

Chapter

15 the Schedule to the Customs Tariff

Act.

1975

(Central ^{Act 51of}

1975) ^{withthe HSNcode}

1517.90,

shall ^beattherate applicable ^{to the}

goods ^intheThird

Schedule. ^from151

April. ^{2005to 22nd} Febmary.

2017.

Notwithstanding anything

conlained^inthe

aforementioned

proviso. ^tax if any paid.

shall not be

refunded":

(b) ⁱⁿ

sub-section

(2). ^toclause

(a) ^the

following proviso

shall^be inserted.

namely}?

"Provtded that

notwithstanding anything

contained in clause

(1'!

of section

8.

a dealer

paying

compounded

tax for the

goods

mentioned in that

clause.

shall not be liable to

pay

tax under this

sub-section

on

such goods ^witheffect^from1st

April.

2013.":

(2) ⁱⁿsection ^{24. in}sub-section

(1).—

(i) ⁱⁿclause

to). ^forthewords

"three

years" ^thewords "four years"

shall^be

substituted:'

(ii) ^forthefourth

proviso. ^the

following proviso

shall^be substituted,

nantely:~—

"Provided also ^that

the

period ^for

rejection

of retum and

completion of assessments

including

those

subjected ^toextension under

section 2513 which

expires

on Slst

March. 2017.

shall be extended up

to 3lst

March. 2018.";

(3) ⁱⁿ

section ^{25. in}sub—section

(1).!

(i) ^forthewords "five

years". ^thewords^"six

years"

shall be

substituted:

(ii) ^{for the}third provtso,^the

following proviso

shall^be substituted.

namely:—-

"Provided ^alsothatthe

period ^for

proceeding ^to

determine

any assessment

including

those

subjected

to extension under

section

251!

which expires ^onSlst

March, 2017,

shall^beextended^{up to3151}March. 2018.";

9

(4) ^forsection ^{25E. the}

followmg

section shall^be

substituted, namely:—

"ZSE.

Special

provisionfilr

assessment and payment afmxfor prtwumptivc (Malena—(l) Notwithstanding anything

contained^inthisAct or rules made thereunder

or in any

judgment.

decree or order of any court, tribunal^or

appellate ^orrevisional

authority ^or

any

assessment order or

penalty

order issued under

this

Act,

the dealers who have

opted

to

pay tax under sub-section

(5)

of section 6 and with

regard

to whom unaccounted

purchases

have been detected

by

the

assessing authority

for the

period up ^toJlst

March. 2016. may opt ^tosettle their cases

by

paying tax

at,—

(i) ^halfper ^centontheturnover^oftaxable

goods. ^{if the}

total turnover dotemiined is. within the total turnover limit specified

under sub-section ^{(5) of}section ^6;

(ii) ^one

per ^centonthetumover^oftaxable

goods, ^forthetotal tumover determined in excess of the total turnover limit specified

under sub-section ^{(5) of}

section^6andup ^to rupees ^one

crore. in addition^tothe^taxdue under clause

(i) above;

(iii) ^two

per ^centontheiumover^oftaxable

goods, ^forthetotal turnover

determined above rupees

one

crore, in

addition to the tax due under clauses

(i)

and

(ii)

above. and on

payment

of such tax. all

penalties

and interest including

penalty

under sub-section

(7) ^ofsection ^22,

shall stand

waived. Exp/analions—Notwithstanding

anything

containedⁱⁿclause ^{(11) of} section 2 of the

Act,

for the purpose of this

section,

'total turnover dctenuined' shall be the total turnover obtained

by adding

unaccounted purchases

detected^ordeclared^withfiveper ^cent

gross profit ^tothetotal turnover

declared as

per the returns filed.

(2) ^For

settling ^thecases under sub-section

(I). ^thedealer shall^file option

before^the

assessing authority ^onor

before^30th

September.

2017,

along ^withtheevidence

regarding

withdrawal^ofcases,^ifany,

pending before any court, tribunal or

appellate

or revisional

authority. mas/2017543

lO

(3) ^Such

option ^andsettlement shall cover^allthefinancial yearsⁱⁿ which unaccounted

purchases

have been detected '

(4) ^'lhe

assessing authority

shall

intimate ^the

dealer, ^theamount^to be

paid

under sub—section

(1),

within

fifteen

days

from the date of

receipt of ^the

option

(5) Thiny per ^centoftheamount^dueunder^thisscheme shall^he paid

within fifteen ^{days fromthedateof}

receipt ^ofthe

intimation under sub-section

(4)

and the balance amount shall he

paid

on or before llst December, ^20|7in

equal monthly

instalments.

(6)

Without

prejudice ^tothe

provisions ^ofthis

section, ^the Commissioner may issue such instructions to the

assessing

authorities and the dealers for the effective

implementation

of the scheme.

(7) Any

dealer^who

opts ^forthisscheme shall obtain^Taxpayers Identification Number

(TIN)

under this Act with effect ^fromlst

April,

2016

(8) ^Nofunhcr action under any^ofthe

provisions ^{of thisAct}shall be initiated

by

the

assessing authority ^With

regard ^totheunaccounted purchases

settled

by ^the

dealer under^thissection^orother

irregularities ⁱⁿ accounts which resulted from

such unaccounted

purchases,

and^no

appeal or revision

shall lie

against

the amount^sosettled

under this section.

(9)

Dealers^{who have}

opted ^to

pay ^taxunder

sub-section ^{(5) of} section ⁶

and ^with

regard ^towhom unaccounted

purchases

have^notbeen detected

by

the

assessing

authority

for^the

period up ^to3lst

March, 2016. may also

Voluntarily

declare such unaccounted

purchases,

and

opt

for the scheme mentioned ⁱⁿsub-section

(1), ^{and on}

doing

so, ^nofurther

action under this Act shall be initiated

against

such dealers ^with

regard ^tothe same.

(l0)

Dealers^who

opted ^tosettle

their ^c'csunder^this

sectionⁱⁿ 20l6-l7. ^buthadfailed ^tomake

payments

may^also

opt ^tosettle their cases under this

section,

and the amounts, if any, oaid

earlier shall be adjusted

towards ^theamount ^{tobe paid}

under^this

section,

provided ^that no refunds shall be allowed.

ll

(11)

There shall^notbeany refund

subsequently ^fortheamount settled under this Scheme. under any circumstance";

(5)

after section ^{25E, the}

following

section shall ^be

inserted. namely:

"25F.

Spcctu/ pruvm'unxjar

LI.\'.}'L'.\SIIIL'HI (Iml [m'rmcnl u] tuxfm' curtain imrk

wu/nwlmzr.—Notwiihsranding

anything

contained

in this Act or rules made thereunder ^orin any judgment.

decree^ororder of any coun. tribunal^or

appellate

authority.

works contractors who have

opted

for and

paid

compounded ^taxunder clause

(a)

of section 8 of the Act for the years

up ^to2014-15

in

respect

of works

relating ^toinstallation of kitchen cabinet.

aluminium fabrication ^andair

conditioning plants ⁱⁿwhich^the transfer of materials is ^inthelimit of

goods

and ^ifallthe

purchases

for executing ^suchcontracts ^arefromwithin^the

State^{maypay an}additional tax at two

per

cent^onthe whole

contract

amount and^on

payment

at such tax.

no turther

proceedings

under this Act.

including any

assessment or

penalties

shall lie

against

such contractors. .

(6)

after

section ^{31. the}

t'ollowrng

section

shall^be

insened. namely:~

"31A Rut/"CHI!!!

{gl'urreurx

in certain

L'uxclli(l) Notwithstanding anything

contained^inthisActorru'-2s ^madethereunder^orinanyjudgment. decree or order of any

court. tribunal^or

appellate

authority. any

assessee who is in arrears of tax ^or

any other amount due

under this^Actorunder the Central Sales ^Tax

Act. ^I956

(Central ^Act74of

1956)

relating ^tothe period up ^toand

including ³¹⁵¹

March. 20]],^{mayopt for}

settling ^the arrears on

payment

of the

principal

amount of the tax in arrears and

thirty per ^centof the

penalty

amount

by availing ^a

complete

reduction

of the interest on the tax amount and ^anthe

penalty

amount.

(2)

Notwithstanding

anything

contained ^intheKerula Revenue Recovery ^{Act. 1968 (15 of}

1968)

reduction^ofarrears under sub-section

(1)

shall^be

applicable ^tothose cases ⁱⁿwhich revenue

recovery proceedings ^havebeeninitiated ^andthe

assessing

authorities shall^have the power

to

collect

such amounts on settlement under sub-section

(1)

and where the amount is settled under sub-section

(1) ^the

assessing

authorities shall

withdraw the revenue

recovery

proceedings against

such assessees which will then be

binding

12

(3) ^Theassessee shall withdraw ^{all the}cases

pending

before any appellate ^orrevisional

authority,

tribunal^orcourts^for

opting

under^this section.

(4) ^Allarrears

including ^taxand

penalties pertaining ^toa

year shall be settled

together

under this

section.

(5) ^Anassessee^whointends^to

opt^forpayment^ofarrears under sub-section

(1)

shall submit an

application

to

the

assessing authority

on or before

30m

September.

2017,

to) ^Thearrears^forthepurpose^ofsettlement

under ^thissection shall be

calculated as on the date of submission of

application.

(7) ^On

receipt ^ofan

application

under sub-section

(5). ^the

assessing authority

shall detennine ^theamount^oftaxandother amounts^duefrom the dealer under

sub-section

(1)

and shall intimate the satire to the

dealer. and

thereupon

the dealer shall remit the amount in

equal monthly instalments on or before Slst

December,

2017:

Provided that an assessee who

opts

to settle his arrears under sub-section

(1)

has remitted any

amount

relating

to the

arrears for obtaining ^a

stay voluntarily ^or

by way^(ifanorder^ordecree^or

judgment passed by any

court^ortribunal^or

appellate authority ^{and, if thecaseis} pending

before^such

authority, ^theamount^so

paid

shall ^betreated^asthat paid

under^this

option.

(8)

There shall^notbeany refund

subsequently ^fortheamount seltled under this scheme. under any circumstances":

(7) ⁱⁿsection ^{55, in}subsection

(I). ^»

(i) ^forthe

words. brackets ^and

figures

"other ^thanthose under seetiun

16,

section

19.

Suh»sc€llun$

(S) ^and

(9; of section 44.

section

49,

section^6/,

section 68. section 6')

and section 70" the words.

brackets and figures

"other ^than

those under sub-section

(3'), sub-section

(8) ^orsuh-sccrion^{(9) of}section to and

subsection (8)

ot'

section^19"shall ^be substituted;

'_____—