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Act Description :

THE KARNATAKA TAXATION LAWS (AMENDMENT) ACT, 2003
Act Details :-

THE KARNATAKA TAXATION LAWS (AMENDMENT) ACT, 2003



(Received the assent of the Governor on the twenty Ninth day of March, 2003)



KARNATAKA ACT NO. 7 OF 2003



(First published in the Karnataka Gazette Extra-ordinary on the thirty first day of March, 2003)



An Act further to amend certain taxation laws as in force in the State of Karnataka.



Whereas it is expedient to amend certain taxation laws for the purpose hereinafter appearing:



Be it enacted by the Karnataka State Legislature in Fifty-fourth year of the Republic of India, as follows:-



1. Short title and commencement. - (1) This Act may be called the Karnataka Taxation Laws (Amendment) Act, 2003.



(2) It shall come into force with effect from the first day of April, 2003.



2. Amendment of Karnataka Act 22 of 1957. - In the Karnataka Agricultural Income Tax Act, 1957 (Karnataka Act 22 of 1957),



(1) in section 8,



(i) in the heading, after the word “tea”, the words and punctuation mark“, coffee and rubber” shall be deemed to have been inserted from the first day of April, 2002,



(ii) after the word “tea”, the words “coffee and rubber” shall be deemed to have been inserted from the first day of April, 2002,



(2) in section 18, in sub-section (3-A), the following proviso shall be deemed to have been inserted from the first day of April, 2002, namely,-



“Provided that in the case of an assessee holding land not exceeding fifty acres, the interest payable shall not exceed five thousand rupees.”



3. Amendment of Karnataka Act 25 of 1957. - In the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957),



(1) in section 5,



(a) in sub-section (3), in clause (a),



(i) after the sixth proviso, the following shall be deemed to have been inserted from the first day of April, 1995 and shall be deemed to have been omitted from the first day of April, 1996, namely.-



“ Provided also that no tax under this sub-section shall be payable by an undertaking of the Central Government on its turnover relating to sale under Public Distribution System of sugar imported from outside the country”,



(ii) after the proviso so inserted, the following shall be and shall be deemed to have been inserted with effect from the first day of April 2000, namely,-



“ Provided also that the taxable turnover in respect of sale of Beer shall be arrived at by deducting the charges levied as litre fee under sub-rule (3) of rule 2 of the Karnataka Excise (Duties and Fees) Rules, 1968”,



(iii) after Explanation II, the following shall be and shall be deemed to have been inserted with effect from the first day of April 2002, namely,-



“Explanation III.- For the purpose of the sixth proviso to clause (a), where goods are sold, under a brand name by the trade mark holder or the brand name holder or any other dealer having the right as proprietor or otherwise to use the said name or trade mark either directly or through another on his own account or on account of others, who is exempt from tax by any notification issued under Section 8-A or Section 19- C, the expression “tax already paid” means the tax payable under this Section on such sale if the sale had been effected by any other dealer.”



(b) in sub-section (4), in the first proviso, for the words “tax has been paid”, the words “tax has become payable” shall be deemed to have been inserted from the first day of April, 2000,



(2) in section 6, after the proviso, the following shall be deemed to have been inserted from the first day of April, 1998 and shall be deemed to have been omitted from the first day of April, 1999, namely,-



“Provided further that no tax shall be payable under this section on the purchase of sowing seeds”,



(3) in section 10,after sub-section (4), the following shall be



inserted, namely,-



“ (5) Nothing in this section shall apply to any dealer registered under the Karnataka Value Added Tax Act, 2003 and who is not a dealer in petrol, diesel, aviation turbine fuel, lottery tickets and sugarcane.”



(4) in section 10-A, after sub-section (10), the following shall be inserted, namely,-



“ (11) No dealer who is registered under the Karnataka Value Added Tax Act, 2003, shall be required to pay registration or renewal fee under this Act.”



(5) in fifth Schedule, in the entries relating to serial number 2, for the word “flowers”, the words and punctuation mark “flowers, fruits” shall be deemed to have been substituted from the first day of April, 2000.



4. Amendment of Karnataka Act 30 of 1958.- In the Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958).-



(1) in section 2, in clause (i), in the Explanation, after the word, figure and letters “Section 4-AA”, the words “any sponsorship fee or advertisement charges paid to the proprietor or any person connected with or conducting or organizing any event of sport” shall be inserted,



(2) in section 3, in sub-section (1-A), after the word and figure “section 2”, the words, figures and letters “other than an entertainment on which tax is levied under section 4-E or 4- F” shall be deemed to have been inserted with effect from the first day of April, 2002,



(3) after section 3 the following section shall be



inserted, namely,-



“3-A. Additional tax on admission.- In the case of cinematograph shows, in addition to the tax leviable under section 3, there shall be levied and paid to the State Government a tax on each payment for admission to any class at the following rates namely,-



























Sl. No.

Classification of Theatres

Amount

(1)

(2)

(3)

1

Air-conditioned and Air- cooled Theatres

One rupee on each payment for admission

2

Other Theatres

Fifty paise on each payment for admission


 



 



(3)  in section 3-C,-



(i)   in sub-section (1), in clause (a), in the first proviso, the words and figures “up to 31st day of March, 2002”, shall be deemed always to have been omitted,



(ii)  for the word and figure “section 3” wherever they occur, the words, figures and letter “sections 3 and 3-A” shall be substituted,



(4)  in section 4, for the word and figure “section 3” wherever they occur, the words, figures and letter “sections 3 and 3-A” shall be substituted,



(5)  in section 4-A, for the word and figure “section 3”, the words, figures and letter “sections 3 and 3-A” shall be substituted,



(6)  in sections 4-AA, 4-B and 4-C, for the word and figure “section 3” wherever they occur, the words, figures and letter “sections 3 and 3-A” shall be substituted,



(7)  in section 4-D, in the table,



(i)   in the entries relating to serial number 1, in column 3, for the words “Rupees three thousand per month”, the words “Rupees seven thousand five hundred per month” shall be substituted,



(ii)  in the entries relating to serial number 2, in column 3, for the words, “Rupees two thousand per month”, the words “Rupees four thousand per month” shall be substituted,



(8)  in section 4-E,-



(i)   after the words “ admission to ”, the words “ or participation in ” shall be deemed always to have been inserted,



(ii)  the following proviso shall be inserted, namely,- “Provided that no tax shall be levied where the



payment for admission excluding the amount of tax, does not



exceed two hundred and fifty rupees.”.



(9)  in section 4-F,-



(i)   after the words “ admission to ”, the words “ or participation in ” shall be deemed always to have been inserted,



(ii)  the following proviso shall be inserted, namely,- “Provided that no tax shall be levied where the



payment for admission excluding the amount of tax, does not



exceed two hundred and fifty rupees.” .



1.   Amendment of Karnataka Act 35 of 1976.- In the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976.-



(1)  in section 2, after clause (h), the following explanation shall be inserted, namely,-



“Explanation.- Every branch of a firm, company, corporation or other corporate body, any society, club or association shall be deemed to be a person.”



(2)  for the schedule including the explanations the following shall be substituted, namely,-



SCHEDULE



[See Section 3(2)]



Rates of tax on professions, trades, callings and employments



















































































































































Sl.



No.

Class of persons

Rate of tax

1



 



 



 



 



 



 



 



 



 



 



 



 



2

Salary or wage earners whose salary or wage or both, as the case may be, for a month is,-




  1. not less than Rs.3,000 but less than Rs.5,000

  2. not less than Rs.5,000 but less than Rs.8,000

  3. not less than Rs.8,000 but less than Rs.10,000

  4. not less than Rs.10,000 but less than Rs.15,000

  5. Rs.15,000 and above



Legal practitioners including Solicitors and Notaries public:-




  1. in the Bangalore Urban Agglomeration where standing in the profession is-

 



 



Rs.30 per month Rs.60 per month Rs.100 per month Rs.150 per month Rs.200 per month

Sl.



No.

Class of persons

Rate of tax

 



 



 



 



 



 



 



 



 



 



3

  1. less than 5 years

  2. 5 years or more but less than 15 years

  3. 15 years or more



 




  1. in any other area in the State is-

    1. less than 5 years

    2. 5 years or more but less than 15 years

    3. 15 years or more





 



Technical        and      Professional Consultants other than those mentioned elsewhere in the Schedule but including plumbing and Tax consultants:-








      1. in the Bangalore Urban Agglomeration where standing in the profession is-

        1. less than 2 years

        2. 2 years or more but less than 5 years

        3. 5 years or more but less than 10 years

        4. 10 years or more









 



 




  1. in any other area in the State is-

    1. less than 2 years

    2. 2 years or more but less than 10 years

    3. 10 years or more

Nil



Rs.1500 per annum Rs.2500 per annum



 



Nil



Rs.1000 per annum Rs.1500 per annum



 



 



 



 



 



 



 



Nil



Rs.1000 per annum Rs.1500 per annum Rs.2500 per annum



 



 



Nil



Rs.1000 per annum Rs.1500 per annum

Sl.



No.

Class of persons

Rate of tax

4



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



5



 



 



 



 



 



 



 



6

  1. Chief Agents, Principal Agents, Special Agents, Insurance Agents and Surveyors or Loss Assessors registered or licensed under the Insurance Act, 1938 (Central Act IV of 1938) whose annual income is not less than Rs.36,000.

  2. Pigmy Agents or UTI Agents whose annual income is not less than Rs.36,000.



Explanation: For the purpose of this item income shall be deemed to be the commission or any other remuneration by whatever name called, earned by the person as such Chief Agent, Principal Agent, Special Agent, Insurance Agent, Survey or Loss Assessor or Pigmy Agents or UTI Agents.



 



Chartered Accountants and Actuaries where the standing in the profession is,-




  1. Less than 2 years

  2. Not less than 2 years but less than 5 years

  3. 5 years or more



 



Medical Practitioners, including Medical Consultants (other than practitioners  of       Ayurvedic, Homeopathic and Unani Systems of



medicines), Dentists, Radiologists, Pathologists and persons engaged in

Rs.1500 per annum



 



 



 



 



 



Rs. 1000



per annum



 



 



 



 



 



 



 



 



 



 



 



 



 



Nil



Rs.1000 per annum Rs.2500 per annum

Sl.



No.

Class of persons

Rate of tax

 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



 



7

other similar professions or callings of a para-medical nature:-




  1. in the Bangalore Urban Agglomeration where standing in the profession is-

    1. Less than 2 years

    2. 2 years or more but less than 5 years

    3. 5 years or more






  1. in any other area in the State-

    1. Less than 2 years

    2. 2 years or more but less than 5 years

    3. 5 years or more but less than 10 years

    4. 10 years or more





Engineers, RCC Consultants, Architects and Management Consultants-








      1. in the Bangalore Urban Agglomeration where standing in the profession is-

        1. Less than 2 years

        2. 2 years or more but less than 5 years

        3. 5 years or more







  2. in any other area in the State-

    1. Less than 2 years

    2. 2 years or more but less than 10 years

    3. 10 years or more

 



 



 



 



Nil



Rs.1000 per annum Rs.2500 per annum



 



Nil



Rs.1000 per annum Rs.1500 per annum Rs.2500 per annum



 



 



 



 



 



Nil



Rs.1000 per annum Rs.2500 per annum



 



Nil



Rs.1000 per annum



Rs.1500 per annum

Sl.



No.

Class of persons

Rate of tax

8



 



 



9



 



 



 



 



 



 



 



10



 



 



 



 



 



 



 



 



 



 



 



 



11

Members of Stock-Exchanges recognized under the Security Contracts (Regulation) Act, 1956



Estate agents or brokers,




  1. in Bangalore Urban Agglomeration,

  2. in any other area in the State

    1. Income tax payees





 






    1. Other than (a) above





 



Contractors executing works contract (as defined under the Karnataka Sales Tax Act, 1957 or the Karnataka Value Added Tax Act, 2003) where total consideration of all the contracts in a year is:-








      1. less than Rs.2 lakhs

      2. more than Rs. 2 lakhs but less than Rs.10 lakhs

      3. more than Rs.10 lakhs but less than Rs.25 lakhs

      4. more than Rs.25 lakhs







 



 




  1. Race horse owners and trainers licensed by the turf clubs.

  2. Jockeys licensed by the turf clubs / race clubs-

    1. in case of Apprentice Jockeys





 






    1. other than (a) above

Rs.2500 per annum



 



 



Rs.2500 per annum



Rs.1500 per annum Rs.1000 per annum



 



 



 



 



 



 



Nil



Rs.1000 per annum Rs.1500 per annum Rs.2500 per annum



 



Rs.2500 per annum



 



Rs.1000 per annum Rs.2500 per annum

Sl.



No.

Class of persons

Rate of tax

 



12



 



 



 



 



 



 



 



 



 



 



13



 



 



 



 



 



 



 



 



 



 



 



 



14



 



15

  1. Bookmakers licensed by turf clubs



Self-employed persons in the motion picture industries as follows:






    1. Directors, Actors and Actresses (excluding Junior Artists), Playback Singers, recordists, editors

      1. Income tax payees







 








      1. other than (i) above







 



(b) Cameramen and still photographers



Dealers registered or liable to be registered under the Karnataka Sales Tax Act, 1957 or the Karnataka Value Added Tax Act, 2003 whose total turnover in any year is-




  1. Upto Rs.2 lakhs

  2. not less than Rs.2 lakhs but less than Rs.10 lakhs

  3. not less than Rs.10 lakhs but less than Rs.25 lakhs

  4. Rs.25 lakhs or more



 



 



Occupiers of factories as defined under the Factories Act, 1948



Employers of establishments defined under the Karnataka Shops and Commercial Establishments Act, 1961,-



(i) Where there are no employees

Rs.2500 per annum



 



 



 



 



Rs.2500 per annum Rs.1500 per annum Rs.900 per annum



 



 



 



 



 



Nil



Rs.1000 per annum Rs.1500 per annum Rs.2500 per annum



 



Rs.1000 per annum



 



 



 



 



 



Nil.

Sl.



No.

Class of persons

Rate of tax

 



 



 



 



 



 



16



 



 



17



 



 



 



 



 



18



 



 



 



 



 



19



 



 



 



 



 



20

  1. Where not more than 5 employees are employed

  2. Where more than 5, but not more than 10 employees are employed

  3. Where more than 10 employees are employed



Owners of Oil Pumps and Service stations



 




  1. Licensed    wholesale    dealers    of liquors other than toddy and arrack

  2. Licensed imported foreign liquor vendors other than those specified in




  1. above.



 




  1. Owners of residential hotels or lodging houses having less than 20 rooms

  2. Owners of residential hotels or lodging houses having 20 rooms or more




  1. Owners of cinema theatres but excluding touring talkies.

  2. Owners of touring talkies



 




  1. Owners of video parlours



 



Holders of permits of transport vehicles (other than auto rickshaws) granted under the Motor Vehicles Act, 1988.-






    1. owning only one vehicle





 






    1. owning more than one vehicle

Rs.1000 per annum Rs.1500 per annum Rs.2500 per annum



Rs.2500 per annum



 



Rs.2500 per annum Rs.2500 per annum



 



 



Rs.1500 per annum



Rs.2500 per annum



 



Rs.2500 per annum Rs.1500 per annum Rs.1000 per annum



 



 



Rs.1000 per annum



Rs.2500 per annum

Sl.



No.

Class of persons

Rate of tax

21



 



22



 



 



23



 



 



 



 



 



 



 



 



 



 



 



24



 



 



25



 



 



26



 



 



27

Money lenders licensed under the Karnataka Money Lenders’ Act, 1961



Individuals or institutions conducting chit funds



 



Cooperative Societies registered under the Karnataka Cooperative Societies Act and engaged in any profession, trade or calling.-




  1. State level societies



 




  1. Cooperative sugar factories, spinning mills and banks

  2. District level societies



 




  1. Below district level but not below taluk level societies



Banking companies as defined in the Banking Regulations Act, 1949



 



Companies registered under the Companies Act, 1956 and engaged in any profession, trade or calling.



 



Each partner of a firm engaged in any profession, trade or calling.



Agriculturists growing plantation crops as       defined     in         the       Karnataka Agricultural Income Tax Act, 1957 (Karnataka Act 22 of 1957)



(a) in extents of land exceeding 15 acres and less than 50 acres

Rs.2500 per annum



Rs.2500 per annum



 



 



 



 



 



Rs.2500 per annum Rs.2500 per annum Rs.1500 per annum Rs.1000 per annum



Rs.2500 per annum



 



Rs.2500 per annum



 



Rs.1000 per annum



 



 



 



 



Rs.1500 per annum

Sl.



No.

Class of persons

Rate of tax

 



 



28



 



 



 



 



 



 



29



 



 



 



 



 



 



 



 



30



 



 



 



 



 



 



31



32

  1. in extents of land exceeding 50 acres



Photo laboratories, film processing laboratories and photo studios.-






    1. in the Bangalore Urban Agglomeration or within the Municipal limits of District Headquarters/Town

    2. in any other area in the State





 








      1. Nursing home and hospital other than those run by the State or Central Government.

      2. Pathological testing laboratories and X-ray clinics.-

        1. in the Bangalore Urban Agglomeration or within the Municipal limits of District Headquarters / town

        2. in any other area in the State.









 



Beauty parlours, dry cleaners and interior decorators-




  1. in the Bangalore Urban Agglomeration or within the Municipal limits of District Headquarters / town

  2. in any other area in the State.



 



Film distributors






    1. Travel agents not falling under sub- item (b) below.-

      1. in the Bangalore Urban Agglomeration or within the Municipal limits of District Headquarters/Town

Rs.2500 per annum



 



 



Rs.1500 per annum



Rs.500 per annum Rs.2500 per annum



 



 



 



Rs.2500 per annum



Rs.1000 per annum



 



 



Rs.1500 per annum



Rs.1000 per annum Rs.2500 per annum



 



 



Rs.1500 per annum

Sl.



No.

Class of persons

Rate of tax

 



 



 



33



 



34



35



 



36



 



37



 



 



 



 



 



38



 



 



 



 



 



 



 



 



39

(ii) in any other area in the State.



(b) Air travel agents Journalists



Advertising firms / agencies



Persons using photocopying machines for job works



Video cassette libraries



 



Educational Institutions and Tutorial Colleges or Institutes (other than those owned by the State or Central Government or Institutions teaching Kannada or English shorthand or typewriting).



Persons owning / running STD/ISD/FAX Booths other than those owned / run by Government or physically handicapped persons.-




  1. In the Bangalore Urban Agglomeration or within the Municipal limits of District Headquarters/Town

  2. In any other area in the State.



 



Persons providing entertainment using Dish Antennae and Cable TV-




  1. In the Bangalore Urban Agglomeration or within the Municipal limits of District Headquarters/Town

  2. In any other area in the State.

Rs.1000 per annum Rs.2500 per annum Rs.1000 per annum Rs.2500 per annum Rs.1000 per annum Rs.1000 per annum



Rs.2500 per annum



 



 



 



 



 



 



 



 



Rs.600 per annum



 



Rs.300 per annum



 



Rs.1500 per annum



Rs.1000 per annum

Sl.



No.

Class of persons

Rate of tax

40



 



41



 



 



 



 



 



42



 



 



43



 



44



 



 



 



45



 



 



46

Property Developers including Land Developers and Building / Flat Developers



Persons owning / running,




  1. Computer Institutes selling time,

  2. Computer Training Institutes / Driving Institutes / Technical Training Institutes



Persons owning Marriage Halls / Kalyana Mantaps.



 



Owners of bars and restaurants within the limits of City Municipal Corporation.



Licence Holders of distilleries, bottling units and vending of arrack (other than sub lessees)



 




  1. Cinematograph film processors.



 




  1. Owners of outdoor film shooting units



Persons licensed or approved as contractors by the Railways, State or Central Government, Corporations, Local Authorities or any other person or agency, namely, Contractors constructing roads, dams, canals, bridges, culverts including civil or masonry work, railways sleeper contractors, forest contractors and electrical contractors; where the total



consideration of all the contract in a year is.-

Rs.2500 per annum



 



Rs.2500 per annum Rs.1500 per annum



Rs.2500 per annum



 



Rs.2500 per annum



Rs.2500 per annum



 



Rs.2500 per annum Rs.2500 per annum

Sl.



No.

Class of persons

Rate of tax

 



 



 



 



 



 



47



 



 



48



 



49



 



 



 



 



50



 



51



 



 



 



 



 



 



52



 



53

  1. Upto Rs. 2 lakhs

  2. Rs.2 lakhs and above but less than Rs.10 lakhs

  3. Rs. 10 lakhs and above but less than Rs.25 lakhs

  4. Rs. 25 lakhs and above



Transport contractors including forwarding and clearing agents



 



Bankers who are financing the trade against hundies or other securities by way of short term advance on interest.




  1. Authorised Assistant recognized by Stock Exchange

  2. Stock brokers, sub-brokers recognized by the Stock Exchange Board of India



Persons running weigh bridges



 




  1. Persons operating courier service



 




  1. Agents of courier service.-

    1. in Bangalore Urban Agglomeration





 






    1. in any other area in the State.





 



Persons operating wireless services including pagers service.




  1. Persons       operating       mobile telephone service

  2. Persons providing internet service



running            internet            cafes,         information kiosks.

Nil



Rs.1000 per annum Rs.1500 per annum Rs.2500 per annum Rs.2500 per annum



Rs.1500 per annum



 



Rs.1000 per annum Rs.2500 per annum



 



Rs.1000 per annum Rs.2500 per annum



 



Rs.600 per annum Rs.300 per annum Rs.2500 per annum



 



Rs.2500 per annum Rs.2500 per annum

Sl.



No.

Class of persons

Rate of tax

 



 



54



 



 



55



 



 



 



56



 



57



 



 



 



 



58



 



59



 



 



 



 



 



 



60



61



 



62

(c)   Persons    operating         e-commerce business



Persons           operating         Air        taxi       and helicopter services



 




  1. Persons running clubs including recreation clubs

  2. Persons operating gymnasium



 



Persons organizing events, pageants, fashion shows and the like.



Persons operating city-taxi services






    1. in the Bangalore Urban Agglomeration

    2. in any other area in the State Persons providing bill boards





Designers        and      landscaping consultants, Vaastu, Fengshui and other similar consultants




  1. in the Bangalore Urban Agglomeration

  2. in any other area in the State



Persons engaged in placement services



Persons running IT call centres



 



Multi-system operators (TV signal providers)

Rs.2500 per annum



Rs.2500 per annum



 



Rs.2500 per annum Rs.2500 per annum Rs.2500 per annum



 



Rs.1500 per annum Rs.1000 per annum Rs.1000 per annum



 



 



 



Rs.1500 per annum Rs.1000 per annum Rs.2500 per annum Rs.2500 per annum Rs.2500 per annum

Sl.



No.

Class of persons

Rate of tax

63



 



 



 



64



 



65



 



 



 



 



 



66



 



67



 



 



 



 



68



 



69

Yoga and Reiki Training Centres




  1. in       the       Bangalore       Urban Agglomeration

  2. in any other area in the State



 



Persons trading in REP licences and Exim scrips



 



On line lottery centres and agents




  1. in       the       Bangalore       Urban Agglomeration

  2. in any other area in the State



 



 



Persons running security services



 



Private radio    broadcasters   and operators



 



Astrologers, Astropalmists,



Numerologists and Faith healers




  1. in       the       Bangalore       Urban Agglomeration

  2. in any other area in the State



 



Persons other than those mentioned in any of the preceding entries who are engaged in professions, trades, callings or employments as the State



Government may from time to time by Notification specify.

Rs.1500 per annum Rs.1000 per annum Rs.2500 per annum



 



Rs.1500 per annum Rs.1000 per annum



Rs.2500 per annum Rs.1500 per annum



 



 



 



Rs. 1500



per annum Rs. 1000



per annum



 



Rs.1000 per annum


 



Explanation I. - Notwithstanding anything in this Schedule, where a person is covered by more than one entry in the Schedule the highest rate of tax specified under any of those entries shall be applicable in his case.



Explanation II.- For purposes of determining the liability and the rate of tax in terms of Serial Number 15 in this Schedule, the higher number of workers and / or employees and / or employees at any time during the year shall be reckoned as the basis.



Explanation III.- For the purposes of Serial No. 16 of this Schedule where the oil pump or service station is held on lease by a lessee, such lessee shall be deemed to be the person liable under the Act.



Explanation IV.- No tax shall be levied under this Act on any firm except when it is engaged in any profession, trade or calling specified in Serial Numbers 2(a)(iii), 3(a)(iv), 5(iii), 6(a)(iii), 6(b)(iv), 7(a)(iii), 8, 8(i), 10(iv), 11(i), 11(ii)(b), 11(iii),



13(d), 15(iv), 16, 17, 18(ii), 19(i), 20(b), 21, 22, 27(b), 29(a),



29(b)(i), 31, 32(b), 34, 37, 40, 41(a), 42, 43, 44, 45, 46(d), 47,



49(b), 51(a), 52, 53, 54, 55, 56, 60, 61, 62, 64 and 66 of the



Schedule.



Explanation V. - No tax shall be levied under this Act on any partner of a firm, which is engaged in any profession, trade or calling specified in Explanation IV above.



Explanation VI.- Notwithstanding anything contained in the Schedule, every branch of any self-employed assessee enumerated in any item of the Schedule shall be deemed to be a separate assessee for the purpose of levy of profession tax specified in the Schedule.”



1.   Amendment of Karnataka Act 22 of 1979. - In the Karnataka Tax on Luxuries Act, 1979 (Karnataka Act 22 of 1979).-



(1)  in Section 2,



(i)   for clause (1) excluding the explanation, the following shall be substituted, namely,-



“ (1) “ Charges for lodging ” include charges for air- conditioning, telephone, telephone calls, television, radio, music, extra beds and the like but do not include any charges for food, drink, laundry or other amenities; ”.



(ii)  for clause (6), the following shall be substituted, namely,-



“ (6) “Proprietor, in relation to a Hotel or a Marriage Hall or a Club” means any person who is owning or holding a hotel or a marriage hall in any capacity recognized by law or the Secretary or Manager or any other person entrusted with the management of a club, and includes, the person who for the time being is in-charge of the management of the hotel or marriage hall or club;”



(2)  in section 3, in sub-section (1), for clauses (a) to (c) excluding the provisos, the following shall be substituted, namely,-

















"(a)

Where the charges for lodging per room per day are more than four hundred rupees but less than seven hundred and fifty rupees.

Seven and one half percent of such charges.

(b)

Where the charges for lodging per room per day are not less than seven hundred and fifty rupees.

Ten       percent     of such charges."


 



(1)  in section 3-C, for the words “ two thousand ”, the words “ five thousand ” shall be substituted.



(2)  after section 3-C, the following shall be inserted, namely,-



“ 3-D. Levy and collection of tax on luxury provided in a club.- There shall be levied and collected a tax at the rate of six hundred rupees per annum per member on luxuries such as card room, bar, billiards room, snooker room and the like provided in a club to the members who are required to pay any amount as fee, deposit, donation or any other such charges by whatever name called.



Explanation I.- For the purpose of this section, a club means a body of persons registered under the Karnataka Societies Registration Act, 1960 (Karnataka Act 17 of 1960).



Explanation II.- Where any corporate membership or similar membership allows use of luxuries provided in a club by more than one person (other than a person who is a dependent of the member), tax shall be levied and collected in respect of every such person.”.



1.   Amendment of Karnataka Act 27 of 1979.- In the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979).-



(1)  in section 3, in sub-section (4), for the words “ obtained from the prescribed authority and duly filled and signed”, the word “ issued” shall be substituted.



(2)  after section 12-B, the following shall be Inserted, namely,-



“ 12-C. Provision for clarification and advance rulings.- The ‘Authority for Clarification and Advance Rulings’, (hereinafter referred to in this section as Authority) constituted under section 4 of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) (hereinafter referred to as the ‘said Act’) shall be authorized to clarify the rate of tax applicable under this Act in respect of any goods liable to tax under the Act or the exigibility of any transaction to tax under the Act on an application by a dealer registered under the Act.



(2)  All the provisions of the said Act including the rules made thereunder relating to the manner of making an application for issue of clarification, payment of fee, disposal and implementation of the order passed by the Authority shall mutatis mutandis apply to this section.”



(3)  in section 13, in sub-section (3), after the proviso, the following shall be inserted, namely,-



“ Provided further that where an order staying proceedings of recovery any tax or other amount is made in any proceedings relating to an appeal under sub-section (1), the Appellate Authority shall dispose of the appeal within a period of ninety days from the date of such order:



Provided also that if such appeal is not so disposed of within the period specified in the second proviso, the order of stay shall stand vacated after the expiry of the said period.”



(4)  in section 14, for sub-section (4), the following shall be substituted, namely,-



“ (4) Notwithstanding that an appeal has been preferred under sub-section (1), the tax or penalty or any other amount, shall be paid in accordance with any order passed by the Deputy Commissioner or the Joint Commissioner under Section 13.



Provided that the Appellate Tribunal may, in its discretion, stay payment of one half of tax, if the appellant makes payment of the other half of the tax disputed.



Provided further that the Appellate Tribunal shall dispose of such appeal falling under the first proviso within a period of one hundred and eighty days from the date of the order staying proceedings of recovery of one half of tax and, if such appeal is not so disposed of within the period specified, the order of stay shall stand vacated after the said period.”



2.   Amendment of Karnataka Act 14 of 1959.- In the Karnataka Electricity (Taxation on Consumption) Act, 1959 (Karnataka Act 14 of 1959),-



(1)  for section 3, the following section shall be substituted, namely:-



"3. Levy of tax on electricity charges.- Subject to the provisions of this Act, there shall be levied and paid to the State Government, advolorem tax (hereinafter referred to as "electricity tax") at five percent on the electricity charges payable (excluding arrears) by all the consumers except consumers under agricultural (irrigation pump sets upto and inclusive of Ten Horse Power), Bhagya jyothi and Kutira jyothi categories."



(2)  in section 4,-



(a)  in sub-section (1), for the words "on the units of energy supplied by him to consumers", the words "on the electricity charges included in the bill issued by him to the consumer" shall be substituted;



(b)  in sub-section (3), the words "on the units of energy consumed by himself or supplied to such other person" shall be omitted.



(3)  in section 5, for the words "amount of tax payable thereon under this Act", the words and figures "amount of tax payable thereon under section 3" shall be substituted.
Act Type :- Karnataka State Acts
 
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