The Kerala General Sales Tax - Notifications
-

NOTIFICATION NO. S.R.O. No. 86/2005, G.O. (P) No. 5/2005/TD Dated 15th January, 2005

In exercise of the powers conferred by Section 57 of the Kerala General Sales Tax Act, 1963 (15 of 1963) the Government of Kerala hereby make the following Rules, further to amend the Kerala General Sales Tax Rules, 1963, namely :-

RULES

1. Short title and commencement -

(1) These rules may be called the Kerala General Sales Tax (Amendment) Rules, 2004.

(2) They shall come into force at once.

2. Amendment of the Rules- In the Kerala General Sales Tax Rules, 1963,

(i) After sub-rule (28) of Rule (5) the following sub-rule shall be inserted namely :-

"(29) (i) Every dealer conducting exhibitions, exchange melas or any prize scheme for sales promotion, shall file an application in Form No. 1C before the assessing authority in whose jurisdiction the dealer has registered under the Act;

(ii) Separate application shall be filed for conducting, exhibitions, exchange melas or any prizes scheme conducted at different places on the same period. Every such application shall be accompanied by a receipt from a Government treasury or a crossed cheque or crossed demand draft in favour of the assessing authority for the fee specified in sub-section 3A of the Section 14;

(iii) The assessing authority, receiving the application may after satisfying that the prescribed fee has been paid and that the application is otherwise in order, issue a certificate in Form No. 4B. The certificate shall be exhibited at the place where the exhibition, exchange meals or any prize schemes are conducted. The validity of the certificate issued under sub-section 3A of Section 14 shall expire on the termination of the exhibition exchange melas or any prize scheme as the case may be."

(2) after clause (m) of rule 9, the following clauses shall be inserted, namely :-

"(n) (I) The taxable turnover of the dealer in respect of the transfer of property involved in the execution of works contract shall be arrived at after deducting the following amount from the total amount received by the dealer for the execution of the contract;

(a) all amounts relating to the sale of any goods involved in the execution of a works contract which are specifically exempted from tax under any of the provisions of the Act;

(b) all the amounts paid to the sub-contractors as consideration for execution of works contract whether wholly or partly:

Provided that no such deduction shall be allowed unless the dealer claiming deduction, produces proof that the sub-contractor is a registered dealer liable to pay tax under the Act and that the turnover of such amounts is included in the return filed by such sub-contractor; and

(i) charges for planning and designing and the architects fee;

(ii) charges for obtaining on hire or otherwise, machinery and tools used for the execution of the works contract;

(iii) cost of consumable used;

(iv) cost of establishment of the dealer to the extent it is retable to the supply of labour and services;

(v) profit earned by the dealer to the extent it is relatable to supply of labour and services

(2) Every works contractor shall file along with the first monthly return after the commencement of the works contract, copy of the works schedule the statement of purchase of goods which are intended to be appropriated to the works contract effected during every month and pay the monthly tax on the basis of the purchases made during the month assuming the turnover as 115% of the purchase price.

(3) Where a contractor choose to pay tax on the actual turnover, he shall produce evidence in support of the claim namely evidence to prove the stage of the work at the beginning of the month and at the end of the month with particulars of material appropriated to the contract during the month. If the purchase details of goods transferred in the execution of the contract is not ascertainable, the turnover has to be arrived at after deducting labour charges as specified in the table annexed to Section 5C of the Act.

"(o) The taxable turnover of a dealer of lottery ticket who is liable to pay tax under sub-section (1) of Section 5 shall be that part of the turnover of the extent it involves the right to participate in a draw it shall calculated at 60% of the retail price of the tickets sold or the total of the retail price of the tickets sold in a draw minus the prize money actually paid in respect of such draw within the State, whichever is higher:.

(3) in sub rule (7C) of rule 21 for the words, figure and letter "annual license fee under section 5B" the words, figure and letter "annual license fee under section 5B" shall be substituted.

(4) After sub-rule 7C of Rule 21 the following sub-rule shall be inserted, namely :-

"(7D) (I) every dealer in lottery ticket who opt pay licence fee as stipulated in Section 5 BA shall file option in writing before the assessing authority on or before 31st May and on receipt of such option the assessing authority shall give permission to pay licence fee on or before 30th day of June. for the assessment year 2004-05 the option shall be filed on or before 31 August, 2004. On receipt of such option the assessing authority shall given permission to pay licence fee on or before 30th day of September, 2004.

Provided that no application shall be rejected without giving the person affected thereby an opportunity of being heard.

(2) Every dealer in lottery tickets who has opted to pay licence fee under Section 5 BA in lieu of tax payable under sub-section (I) of Section 5 of the Act, shall submit a return in Form NO. 9A showing the number of draws for each month and the amount or amounts due from him by way of tax for the month, along with such other particulars specified therein. The return for each month shall be submitted so as to reach the assessing authority on or before 5th day of the succeeding month in which the draw is held. Along with the return he shall also submit proof of payment of tax as specified in clause (a) and (b) of Section 5 BA for the full amount of tax payable under Section 7D for the month to which the return relates after deducting therefrom the amount, if any, claimed as refund due in the month.

(3) Every dealer in lottery tickets liable to pay tax under Section 7D of the Act, shall submit the following particulars along with the return:

(i) name of the State Government or person(s) who is conducting the lottery

(ii) name of the authorized distributors

(iii) authorization or letter of the person conducting the lottery, appointing the distribution;

(iv) authorization or letter of authority of the authorized distributors, appointing the distributor or agent in Kerala

(v) schedule of draw as certified by the person conducting the draw."

(5) after sub-rule (2) of rule 22A the following sub-rules shall be inserted, namely:

"(2A) (I) Every contractor/assessee shall file a declaration before the awarder with regard to the tax liability under clause (iv) of sub-section (1) of Section 5 or who has for payment of tax under sub-section (7) or (7A) of Section 7 of the Act, at the time of payment of contract amount including any advance payment.

(2) Every awarder shall collect quarterly certificate in Form No,. 21DD issued by the assessing authority showing the tax liability or the tax remittance as the case may be of the contractor/assessee up to the previous quarter from the contractor/assessee.

(3) The contractor/assessee shall file an application for quarterly certificate in Form No. 21D before the assessing authority and the assessing authority shall issue certificate in Form 21DD after verification.

Provided that if the contractor is not a registered dealer under the Act, the certificate may be obtained from the assessing authority having jurisdiction over the area in which the works contract is executed.

Provided that certificate issued under sub-rule (3) in Form 21DD shall be provisional and the contractor/assessee shall be liable to pay balance tax if any due after completion of the assessment;

(6) in sub-rule (2) of rule 28, for the words "sixty rupees" the words "seventy five rupees" shall be substituted;

(7) in sub-rule (1) of rule 28A, for the words "sixty rupees" the words "seventy five rupees" shall be substituted.

(8) in sub-rule (14) of rule 32, for the words "seventy rupees" the words "ninety five rupees" shall be substituted;

(9) in sub-rule (17) of rule 32, for the words "seventy rupees" the words "ninety five rupees" shall be substituted;

(10) after Form No. 1B and before Form No. 2 the following Form shall be inserted, namely :-

"THE KERALA GENERAL SALES TAX RULES, 1963

FORM 1C

FORM OF APPLICATION FOR CERTIFICATE UNDER SUB SECTION 3A OF SECTION 14

[See Rule 5(29) (i)]

To,

The Assessing Authority

I................................................................... Son of ........................................................... on behalf of the dealer carrying in the business whose particulars are given below, hereby apply for a certificate under sub-section 3A of Section 14 of the Kerala General Sales Tax Act, 1963.

1.	Name and Postal Address of the dealer (if there is trade name, the trade name shall also be given)	:
2.	Details of Registration No. under the KGST/CST Act.	:
3.	Name and full address and status of the person who signs the application (as regards, status, specify whether Proprietor, manager, Director, Partner, Etc.)	:
4.	The place where the exhibitions, exchange melas or any prize scheme with full particulars.	:
5.	Period of duration of the exhibitions, exchange melas or any prize scheme with full particulars.	:
6.	Date of commencement	:
7.	Amount of fee paid with particulars of challan No. and date, cheque No. and date, name of treasury/bank etc.	:

DECLARATION

I................................................................................ Son of ........................................................................ hereby declare that to the best of my knowledge and belief the information contained in the application given above are true and correct.

Place :	Name, address and signature of the person signing with status.
Date :

For the official use by the Assessing Authority

1.	Date of Receipt of Application	:
2.	Nature of order passed by the Assessing Authority in the application	:
3.	Certificate No. and date	:
4.	Date of issue of certificate	:

			Signature of the Assessing Authority with date"

(ii) after Form No. 4A and before Form No. 5 the following form shall be inserted, namely :-

"THE KERALS GENERAL SALES TAX RULES, 1963

FORM NO. 4B

See Rule 5 (29)(iii)

CERTIFICATE

CERTIFICATE No.

Date :

This is to certify that Sri .............................................., son of ........................................... (if trade name, the trade name shall also be given) has been issued certificate under sub-section 3A of Section 14 of the Kerala General Sales Tax Act, 1963 for conducting exhibitions, exchange melas or prize scheme at the following places and for the period mentioned below:

Place	Period		Nature of the Scheme
	From	To
(1)	(2)		(3)

This certificate is valid for the period stated in column (2) above.

This certificate shall be exhibited at a conspicuous place where the exhibitions, exchange melas or prize schemes conducted for which this certificate is issued.

	Name, signature of the Assessing Authority with date.

(12) after Form No. 9 and before Form No. 10 the following form shall be inserted, namely :

"THE KERALA GENERAL SALES TAX RULES, 1963

FORM NO. 9B

See Rule 21 (7D)(2)

Return for draws in lottery tickets for the month ..............................

(To be filled by the Assessing Authority)					(To be filled by the assessee)
Date of filling .................................					Register No.................................
No. enclosures ..............................					Assessment year ........................
					Circle ...........................................

1.	Name and address of the dealer with status (Specify whether Proprietor, Partner, Manager, Director etc.)			:
2.	Trade name (if any)			:
3.	Total No. of draws			:
	(i)	Name of the State Government(s)/person conducting the lottery		:
	(ii)	Name of the authorized distributor or sole selling agent or the Government/person conducting the lottery		:
	(iii)	Name of the all India authorized distributor and name of the first Distributor/Agent in Kerala who is paying tax.		:
	(iv)	Name of the lottery		:
	(v)	Number of draws in a month		Draw number		Total no. of draws
		(i)	Weekly lotteries
		(ii)	Bi-weekly lotteries
		(iii)	Monthly lotteries
		(iv)	Bumper/Super/Festival lotteries
		(v)	Mega/Bumper Lotteries
	(vi)	Date and draw of lotteries		Draw number		Date and day of draw
		(i)	Weekly lotteries
		(ii)	Bi-weekly lotteries
		(iii)	Monthly lotteries
		(iv)	Bumper/Super/Festival lotteries
		(v)	Mega/Bumper Lotteries
	(vii)	Tax due and paid		No. of draws in a month		Rate/draw	Tax due
		(i)	Weekly lotteries		"	"	"
		(ii)	Bi-weekly lotteries		"	"	"
		(iii)	Monthly lotteries		"	"	"
		(iv)	Bumper/Super/Festival lotteries		"	"	"
		(v)	Mega/Bumper Lotteries		"	"	"
		(viii)	Tax paid Rs.
		(ix)	Mode of payment with details	:
		(x)	Amount adjusted with reasons	:

DECLARATION

I ................................................................... son of ...................................................... do hereby solemnly declared that to the best of my knowledge and belief, the information furnished in the return and the statement and documents accompanying it relevant to the month are correct, complete, and truly stated and in accordance with the provision of the Kerala General Sales Tax Act, 1963 and the Kerala General Sales Tax Rules, 1963.

Place :	Signature and Name of the dealer status in relation to business.
Date :

(13) after Form No. 21CC and before Form No. 22 the following shall be inserted, namely :-

"THE KERALA GENERAL SALES TAX RULES, 1963

FORM 21D

[See Rule 22A (3)]

APPLICATION FOR QUARTERLY CERTIFICATE UNDER SECTION 7(7C) OF KGST ACT

To,

The Assessing Authority

I ........................................................... Son of ................................................................... Contractor/assessee whose particulars are given below, hereby apply for a certificate under sub-section (7C) of Section 7 of the Kerala General Sales Tax Act, 1963 for the quarter ending ....................

1. Name and Postal Address of the contractor/assessee

2. Details of Registered No. Under the KGST/CST Act.

3. Name and address of the awarder

4. Gross value of the contract

5. Period of contract

6. Brief description of contract

7. Place of work

8. Work order No.

9. Detail of option by the contractor, if any

10. Amount received upto the end of the previous quarter

11. Tax paid or recovered upto the previous quarter (details to be furnished)

12. Amount received/receivable during the quarter

13. Turnvoer liable to tax (details to be enclosed)

14. Tax due

15. Tax deducted in the bill during the quarter (details to be furnished)

16. Balance amount payable

DECLARATION

I .............................................................. Son of .............................................................. Hereby declare that to the best of my knowledge and belief the information contained in the application given above are true and correct.

Place :	Name, address and Signature of the person signing with status.
Date :

"THE KERALA GENERAL SALES TAX RULES, 1963

FORM No. 21DD

See Rule 22A (2)

CERTIFICATE

CERTIFICATE No.

Date :

Certify that Sri/Messers ...................................................................................... (name and address of the contractor) holding Registration certificate No.................................... And an assessee of this office is entitled to receive payment of the contact amount after making the deduction of sales tax in respect of the following contracts below for the quarter ended...................................... Relates to the assessment year.

Sl. No.	Name and Address of the awarder	Gross value of the Contract	Period of Contract	Brief description of Contract
(1)	(2)	(3)	(4)	(5)

Place of work	Work Order No.	Details of option by the contractor, if any	Turnover liable to tax	Tax due
(6)	(7)	(8)	(9)	(10)

Tax deducted in the bill during the previous quarter	Balance amount payable	Amount to be deducted in the current payment
(11)	(12)	(13)

Place :	Name and Designation of the Assessing Authority.
Date :

	(Seal)

Explanatory Note

(This does not form of the notification, but is intended to indicate its general purport.)

As per Kerala Finance Act, 2004 certain amendments were made to the Kerala General Sales Tax Act, 1963. Section 14 was amended by inserting a new sub-section (3A) by which a dealer conducting exhibitions, exchange melas or prize schemes for sales promotion shall obtain a permission, from the assessing authority in whose jurisdiction the dealer is registered under the Kerala General Sales Tax Act, for the same.

Section 5C of the Act has been substituted by a provision as per which the determination of taxable turnover in respect of a dealer in works contract who has not opted compounding rate under Section 7, has been prescribed.

Section 5BA of the Act has been amended to revise the rate of licence fee to lotteries including on-line lotteries. Procedure to be fix the taxable turnover.

The cost of Form 18 book, Form 18A book, Form 25 book and delivery note books in Form 26 have been revised to Rs. 75, Rs. 75, Rs. 95 and Rs. 95 respectively.

To carry out the above purpose the Government have decided to make necessary amendments in the Kerala General Sales Tax Rules, 1963.

This notification in intended to achieve the above object.

(Kerala Gazette Extra Ordinary No. 208 dated 31st January, 2005)