THE KARNATAKA VALUE ADDED TAX (AMENDMENT) ACT, 2015
KARNATAKA ACT NO. 15 OF 2015
(First Published in the Karnataka Gazette Extra-ordinary on the Thirty First day of March, 2015)
(Received the assent of the Governor on the thirty first day of March, 2015)
An Act further to amend the Karnataka Value Added Tax Act, 2003.
Whereas it is expedient further to amend the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004) for the purposes hereinafter appearing;
Be it enacted by the Karnataka State Legislature in the Sixty sixth year of the Republic of India, as follows.-
1. Short title and commencement.- (1) This Act may be called the Karnataka Value Added Tax (Amendment) Act, 2015.
(2) It shall come into force with effect from the first day of April, 2015.
2. Amendment of section 4.-In the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004) (hereinafter referred to as the principal Act), in section 4, in sub-section (1), in clause (b), in sub-clause (ii), for the words “seventeen percent”, the words “twenty percent” shall be substituted;
3. Amendment of section 9-A.- In section 9-A of the principal Act, after sub-section (5), the following proviso shall be inserted, namely:-
“Provided that among the authorities making deduction under sub-section (1), the specified class of authorities as may be notified by the Commissioner shall submit a statement in the prescribed form electronically and make payment electronically to the prescribed authority through the internet in the manner specified in the notification”.
4. Insertion of section 9-B.-After section 9-A of the principal Act, the following section shall be inserted, namely:-
“9-B. Deduction of tax at source (in case of purchases made by Government departments and others).-(1) Notwithstanding anything contained in this Act, the Central Government, or any State Government, or an industrial, commercial or trading undertaking of the Central Government or of any State, or any such undertaking in joint sector or a local authority or a statutory body not being a registered dealer under the Act or any other person or body as may be notified by the Commissioner from time to time shall deduct tax amount, out of the amounts payable by them to a dealer, at the rate applicable, in respect of purchase of goods effected by them in the State, with effect from such date as may be notified by the Commissioner.
(2) The authority making deduction under sub-section (1), shall send every month to the prescribed authority a statement in the prescribed form containing particulars of tax deducted during the preceding month and pay full amount of the tax so deducted by it within twenty days after the close of the preceding month in which such deductions were made and the amounts so payable shall for the purpose of Section 42 deemed to be an amount due under this Act.
Provided that the specified class of authorities as may be notified by the Commissioner shall submit a statement in the prescribed form electronically and make payment electronically to the prescribed authority through the internet in the manner specified in the notification.
(3) Where default is made in complying with the provisions of sub-section (2), the prescribed authority may, after such enquiry as it deems fit and after giving opportunity to the concerned authority of being heard, determine to the best of its judgment, the amount of tax payable under sub- section (2) by such authority and the amount so determined shall be deemed to be the tax due under the Act for the purpose of section 42.
(4) If default is committed in the payment of tax deducted beyond ten days after the expiry of the period specified under sub-section (2), the authority making deductions under sub-section (1) shall pay, by way of interest, a sum equal to the interest specified under sub-section (1) of section 37 during the period in which such default is continued.
(5) The authority making deduction under sub-section (1), shall furnish to the dealer from whom such deduction is made, a certificate obtained from the prescribed authority containing such particulars as may be prescribed.
(6) Payment by way of deduction in accordance with sub-section (2), shall be without prejudice to any other mode of recovery of tax due under this Act from the dealer selling the goods.
(7) The burden of proving that the tax on such sale has already been remitted and of establishing the exact quantum of tax so remitted shall be on the dealer.
5. Amendment of section 10.- In section 10 of the principal Act, for sub-section (3), the following shall be substituted, namely:-
“(3) Subject to input tax restriction specified in sections 11, 12, 14, 17, 18 and 19, the net tax payable by a registered dealer in respect of each tax period shall be the amount of output tax payable by him in that period less the input tax deductible by him as may be prescribed in that period and relatable to goods purchased during the period immediately preceding five tax periods of such tax period, if input tax of such goods is not claimed in any of such five preceding tax periods and shall be accounted for in accordance with the provisions of this Act.”
6. Amendment of section 11.- In section 11 of the principal Act, after sub-section (c), the following shall be inserted, namely:-
“(d) Notwithstanding anything contained in this Act, where any dealer has sold goods at a price lesser than the price of such goods purchased by him, the amount of input tax credit shall be restricted to the amount of output tax of such goods.”
7. Amendment of section 22.- In section 22 of the principal Act,-
(i) in sub-section (2),-
(a) for the words “seven and one half”, the words “ten” shall be substituted; and
(b) for the figures “2005”, the figures “2015” shall be substituted.
(ii) in sub-section (3), for the words “sixty two thousand five hundred”, the words “eighty three thousand three hundred thirty” shall be substituted.
8. Amendment of section 27.- In section 27 of the principal Act, in sub-section (1), in clause (c), for the words “seven and one half”, the words “ten” shall be substituted.
9. Amendment of section 62.- In section 62 of the principal Act, in sub-section (5), the following provisos shall be inserted, namely:-
“Provided that the Commissioner may notify the website in which appeal shall be filed electronically:
Provided further that a single appeal may be preferred against orders of assessment or reassessment or any other orders or proceedings, in respect of more than one tax period of any financial year”.
10. Amendment of section 63.-In section 63 of the principal Act, in sub-section (7), in clause (b), for the words “one hundred and eighty days”, the words “three hundred and sixty five days” shall be substituted.
11. Amendment of section 72.- In section 72 of the principal Act, after sub-section (3), the following shall be inserted, namely:-
“(3-A) A dealer who fails to furnish or furnishes incomplete or incorrect particulars for preparation of the return as notified under proviso to sub-section (1) of section 35, as informed in a notice issued to him shall be liable to a penalty of fifty rupees for each day the return remains incomplete or incorrect”.
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