KARNATAKA
VALUE ADDED TAX (AMENDMENT) ACT, 2016 THE KARNATAKA VALUE ADDED TAX (AMENDMENT) ACT, 2016 [Act No. 06 of 2016] [31st March, 2016] 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 seventh year of the Republic of
India, as follows:- (1)
This Act may be called the Karnataka Value Added Tax
(Amendment) Act, 2016. (2)
It shall come into force with effect from the First day
of April, 2016. In the Karnataka
Value Added Tax Act, 2003 (Karnataka Act 32 of 2004) (hereinafter referred to
as the principal Act), in section 10.- (i) in sub-section (3), the following words shall be deemed to have been
omitted with effect from the first day of April 2015; "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" (ii) after sub-section (3), following proviso shall be deemed to have been
inserted with effect from the first day of April 2015; "Provided
that, a registered dealer while calculating the net tax payable on or after
first day of April 2015 may claim input tax 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." (iii) after sub-section (5) following sub-section shall be inserted, namely.- "(6) ?Notwithstanding anything
contained in this Act, input tax deducted by a registered dealer to calculate
net tax payable is provisional to a dealer who fails to furnish or furnishes
incorrect and incomplete particulars for preparation of the return in the
prescribed form electronically through internet in the manner specified in the
notification issued by the Commissioner under first proviso to section 35 and
the jurisdictional Local VAT Officer or VAT sub-officer shall assess such
dealer for such tax period by disallowing input tax claimed by him and issue
demand notice: Provided that,
where an assessment has been made under this sub-section and the dealer
subsequently furnishes particulars for preparation of the return in the
prescribed form or furnishes correct and complete particulars for preparation
of the return electronically through internet in the manner specified in the
notification for the tax period to which assessment relates, the jurisdictional
Local VAT Officer or VAT sub-officer shall withdraw the assessment but the
dealer shall be liable to penalty as applicable under sub-section (3-A) of
section 72". In section 31 of
the principal Act, in sub-section (4), after proviso the following proviso
shall be inserted, namely:- "Provided
further that the dealers so required to submit a copy of the audited statement
of accounts and prescribed documents in the prescribed manner shall submit them
electronically through the website notified by the Commissioner." In section 35 of
the principal Act, in the first proviso to subsection (1), for the words
"or" the words "and" shall be deemed to have been
substituted with effect from the first day of April 2010. In section 38 of
the principal Act, in sub-section (2), after the words and punctuation
"thereunder," the words and punctuation "or the return furnished
is incorrect or incomplete," shall be inserted. In section 72 of
the principal Act.- (i) after sub-section (2), following sub-section shall be inserted, namely:- "(2-A) A dealer who for any prescribed tax period furnishes a revised
return which understates his liability to tax or overstates his entitlement to
a tax credit by more than five per cent of his actual liability to tax, or his
actual tax credit, as the case may be shall after being given the opportunity
of showing cause in writing against the imposition of a penalty, be liable to a
penalty equal to ten per cent of the amount of such tax under or overstated. Explanation:
Notwithstanding anything contained in this Act, for the purpose of this
section, revised return means a return filed under clause (a) and clause (b) of
sub-section (4) of section 35." (ii) after sub-section (3-A), the following
shall be inserted, namely.- "(3-B). A dealer who fails to submit the copy of the audited statement
of accounts and prescribed documents as prescribed in the proviso to
sub-section (4) of section 31 as informed in the notice issued to him shall be
liable to a penalty of fifty rupees for each day of default." In the Fourth
Schedule to the principal Act, after the entries relating to serial number 6,
the following shall be inserted, namely:- "7. Aerated
and carbonated non-alcoholic beverages whether or not containing sugar or other
sweetening matter or flavor or any other additive including soft drinks and
soft drink concentrates (whether in sealed container or otherwise)." In Sixth Schedule
to the principal Act, for the entries relating to serial number 4, in column
number (2) the following shall be substituted, namely:- "Fabrication
and erection of structural works of iron and steel including fabrication,
supply and erection of iron trusses, purlines and the like."
Preamble - KARNATAKA VALUE ADDED TAX (AMENDMENT) ACT, 2016PREAMBLE