KARNATAKA
VALUE ADDED TAX (AMENDMENT) ACT, 2015 THE KARNATAKA VALUE ADDED TAX (AMENDMENT) ACT, 2015 [Act No. 15 of 2015] [31st 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)
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. 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; 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". (1) 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. 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." 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." 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. 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. 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". 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. 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".
Preamble - KARNATAKA VALUE ADDED TAX (AMENDMENT) ACT, 2015PREAMBLE