THE KARNATAKA VALUE ADDED TAX (AMENDMENT) ACT, 2010
(Received the assent of the Governor on the twenty ninth day of March, 2010)
KARNATAKA ACT NO 4 OF 2010
(First Published in the Karnataka Gazette Extra-ordinary on the thirtieth day of March, 2010)
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 first 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, 2010.
(2) It shall come into force with effect from the First day of April, 2010.
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,-
(i) in sub-section (1),-
(a) in clause (a), in sub-clause (ii), after the words “four per cent”, the words “in respect of goods specified in serial number 30 and five per cent in respect of other goods” shall be inserted;
(b) for clause (b), the following shall be substituted, namely:- “(b) in respect of,-
(i) cigarettes, cigars, gutkha and other manufactured tobacco at the rate of fifteen per cent;
(ii) other goods at the rate of thirteen and one half per cent.”
(ii) after sub-section (3), the following shall be inserted, namely:-
“(3-A) Any notification issued under sub-section (3), shall be valid until it is cancelled or varied, notwithstanding that the tax payable in respect of any such goods is modified by amendment to this Act.”
(iii) in sub-section (4), after the words “Third Schedule”, the words “or any other goods” shall be inserted;
(iv) after sub-section (4), the following shall be inserted, namely:-
“(5) Notwithstanding anything contained in sub-section (1), a registered dealer shall be liable to pay tax on the sale of cigarettes, cigars, gutkha and other manufactured tobacco, on the maximum retail price indicated on the label of the container or pack thereof, after reducing from such maximum retail price an amount equal to the tax payable, where the total amount payable to the dealer as the consideration for sale of such goods exceeds five hundred rupees or any other higher amount as may be notified by the Commissioner.
(6) Where tax in respect of his purchase of goods is collected in accordance with sub- section (5),-
(a) a registered dealer whose sale of such goods is not liable to tax under sub-section (5), shall be eligible for refund or adjustment of any amount of tax collected on his purchase, which is in excess of the tax payable on his turnover relating to sale of such goods, and the burden of proving that the tax has been collected and paid in accordance with the said sub- section shall be on the dealer;
(b) a person who is not a dealer liable to get registered under the Act, may claim refund of any amount paid by the selling dealer in excess of the tax payable on the consideration paid by him to such dealer in such manner and subject to such conditions as may be prescribed.”
3. Amendment of section 5.- In section 5 of the principal Act, after sub-section (1), the following shall be inserted, namely:-
“(1-A) Any notification issued under sub-section (1), shall be valid until it is cancelled or varied, notwithstanding that the tax payable in respect of such goods is modified by amendment to this Act.”
4. Amendment of section 18.- In section 18 of the principal Act, in sub-section (2), for the words “two lakh rupees”, the words “five lakh rupees” shall be substituted.
5. Amendment of section 18-A.- In section 18-A of the principal Act, in sub-section (5), for the words “provisions of this sub-section”, the words, brackets and figure “provisions of sub-section (4)” shall be substituted.
6. Amendment of section 22.- In section 22 of the principal Act,-
(i) sub-section (1) shall be omitted;
(ii) in sub-section (2), for the words “two lakh rupees”, the words “five lakh rupees”, shall be substituted;
(iii) in sub-section (3), for the words “fifteen thousand rupees”, the words “forty thousand rupees”, shall be substituted.
7. Amendment of section 27.- In section 27 of the principal Act, in sub-section (1), in clause (c), for the words “two lakh rupees”, the words “five lakh rupees” shall be substituted.
8. Amendment of section 31.- In section 31 of the principal Act, in sub-section (4),-
(i) for the words “forty lakh rupees”, the words “sixty lakh rupees” shall be substituted;
(ii) the following proviso shall be inserted, namely:-
“Provided that every dealer whose total turnover for the year ending Thirty First day of March, 2010 exceeds forty lakh rupees shall have his accounts audited.”
9. Amendment of section 35.- In section 35 of the principal Act, in sub-section (1), the following proviso shall be inserted, namely:-
“Provided that the specified class of dealers as may be notified by the Commissioner shall furnish particulars for preparation of the return in the prescribed form or submit the return in the prescribed form, electronically through internet in the manner specified in the said notification:
Provided further that the specified class of dealers as may be notified by the Commissioner shall pay tax payable on the basis of the return, by electronic remittance through internet in the manner specified in the said notification.”
10. Amendment of section 53.- In section 53 of the principal Act,-
(i) in sub-section (2),-
(a) in clause (c), after the words “the Government”, the words “or the Commissioner”, shall be inserted;
(b) in clause (d), after the words “the Government”, the words “or the Commissioner”, shall be inserted;
(ii) after sub-section(2), the following shall be inserted, namely:-
“(2-A) Notwithstanding anything contained in clause (c) of sub-section (2), the owner or person in charge of the goods vehicle carrying goods of any specified class of goods or any specified class of dealers or as a result of any specified class of transactions as may be notified by the Commissioner,
(a) shall report at the first check post or barrier situated on the route ordinarily taken from the place in the State, from which the movement of goods commences, to its destination; and
(b) shall produce proof of entering in the website, particulars of the goods carried by the consignor or consignee of the goods as may be specified in the notification, before the officer specified in sub-section (2); and
(c) on such production, the officer may allow the goods vehicle to pass through.
(2-B) Where the officer in charge of the check post or barrier, or the officer empowered under sub-section (2), finds that there is any contravention of or non-compliance with, the provisions of clause (a) or that the particulars as specified under clause (b) of sub-section (2- A) have not been entered or the particulars entered are incorrect and incomplete and for which sufficient cause is not furnished, he shall proceed to levy penalty as specified under sub-section (12). ”
(iii) in sub-section (3), the words “nearest check post or police station”, the words “nearest check post or office of the department of Commercial Taxes or police station or any other place as may be notified by the Commissioner”, shall be substituted.
11. Amendment of section 54.- In section 54 of the principal Act, in sub-section (1), for the words, figures and brackets “sub-section (3) of Section 52”, the word and figures “section 53”, shall be and shall always be deemed to have been substituted.
12. Insertion of new section 60.- After section 59 of the principal Act, the following shall be inserted, namely:-
“60. Clarification and Advance Rulings.- (1) The Commissioner may constitute an ‘Authority for Clarification and Advance Rulings’, consisting of atleast three Additional Commissioners, to clarify the rate of tax in respect of any goods or the exigibility to tax of any transaction or eligibility of deduction of input tax or liability of deduction of tax at source under the Act, in respect of any case or class of cases as the Commissioner may specify.
(2) Any registered dealer seeking clarification or advance ruling under this section, shall make an application to the Authority in such form, accompanied by proof of payment of such fee, paid in such manner as may be prescribed.
(3) No officer or any other authority of the Department or the Appellate Tribunal shall proceed to decide any issue in respect of which an application has been made by an applicant under this Section.
(4) The order of the authority shall be binding, only on the applicant who seeks clarification and only in respect of the goods or transaction in relation to which a clarification is sought and also only in the proceedings before the officers of the department (other than the Commissioner) and the Appellate Tribunal, relating to such applicant.
(5) The order of Authority under this Section shall be binding as aforesaid unless there is a change in law or facts on the basis of which the order was passed.
(6) Where the authority finds, on a representation made to it by any officer or otherwise, that an order passed by it was obtained by the applicant by fraud or mis- representation of facts, it may, by order, declare such order to be void ab initio and thereupon all the provisions of this Act shall apply to the applicant as if such order had never been made.
(7) Subject to the provisions of sub-section (2) of section 64 and section 66, every order passed under this section shall be final.”
13. Amendment of section 72.- In section 72 of the principal Act, in sub-section (2), after the words “tax period furnishes”, the words “particulars for preparation of a return or furnishes” shall be inserted.
14. Amendment of the Third Schedule.- In the Third Schedule to the principal Act, in the heading, the words “GOODS TAXABLE AT FOUR PER CENT” shall be omitted.
15. Amendment of the Sixth Schedule.- In the Sixth Schedule to the principal Act,
in
column 3,-
(i) in the entries relating to serial numbers 1 to 6, 8 to 11 and 13 to 22, for the words “Four per cent” wherever they occur, the words “Five per cent” shall be substituted;
(ii) in the entries relating to serial number 23, for the words “Twelve and one half per cent”, the words “Thirteen and one half per cent” shall be substituted.
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