KERALA FINANCE ACT, 2011

Pre. Act No. 16 of 2011

[08th November, 2011]

PREAMBLE

An Act to give effect to certain financial proposals of the Government of Kerala for the Financial Year 2011-2012.

Whereas, it is expedient to give effect to certain financial proposals of the Government of Kerala for the financial Year 2011-2012;

Be, it enacted in the Sixty-second Year of the Republic of India as follows:--

S.1 Short title and commencement

(1) This Act may be called the Kerala Finance Act, 2011.

(2) Save as otherwise provided in this Act,--

(i) clause (ii) of sub-section (2) and sub-clause (f) of clause (i) of sub-section (12) of section 8 shall deemed to have come into force on the 1st day of April, 2005;

(ii) sub-section (7) and sub-clause (g) of clause (ii) of sub-section (12) of section 8 shall be deemed to have come into force on the 1st day of April, 2007;

(iii) sub-clause (e) of clause (ii) of sub-section (3) of section 8 shall be deemed to have come into force on the 1st day of April, 2010;

(iv) section 2, clause (i) of sub-section (3) of section 4, sub-sections (1), (2), (3) and (4) of section 5, sub-sections (1), (2), (3), (4) and (6) of section 6 and sub-section (1), item (ii) of sub-clause (b), sub-clauses (c) and (d) of clause (i), sub-clause (d) of clause (iii) of sub-sec

S.2 Amendment of Act 11 of 1957

In the Kerala Surcharge on Taxes Act, 1957 (11 of 1957),--

(1) in section 3A,--

(i) in sub-section (3), for the words and figures "31st December, 2010", the words and figures "30th September, 2011" shall he substituted;

(ii) in sub-section (4), for the words and figures "31st December, 2010", the words and figures "30th September, 2011" shall be substituted;

(2) in section 3B,--

(i) in sub-section (2), for the words and figures "31st December, 2010", the words and figures "30th September, 2011" shall be substituted;

(ii) in sub-section (3), for the words and figures "31st December, 2010", the words and figures "30th September, 2011" shall be substituted.

S.3 Amendment of Act 35 of 1958

In the Kerala Money Lenders Act, 1958, after section 11A, the following section shall be inserted, namely:--

"11B. Electronic filing and payment.--

The Government may require the licensees to file returns, forms and other statements to be submitted by him under this Act and make the payment of fee or other amounts due under this Act, electronically through the official website of the Commercial Taxes Department, in the manner as may be prescribed.".

S.4 Amendment of Act 17 of 1959

Section 4

In the Kerala Stamp Act, 1959 (17 of 1959), in the SCHEDULE,--

(1) in serial number 31, for clause (i) and the entries against it in columns (2) and (3), the following clause and entries shall, respectively, be substituted, namely:--

In the Kerala General Sales Tax Act, 1963 (15 of 1963),--

(1) to section 7, the following proviso shall be added, namely:--

"Provided that the rate of tax mentioned under clause (b) of item (i) above shall be one hundred and ten per cent of the tax paid for the previous year for those bar hotels who have paid compounded tax under this Act continuously for the last five years and one hundred and twelve per cent of the tax paid for the previous year for those who have paid compounded tax continuously for the last three years.".

(2) in section 17,--

(i) in sub-section (6), for the fourth proviso, the following proviso shall be substituted, namely:--

"Provided also that the assessment relating to the years up to and including the year 2005-06 pending as on 31st March, 2011 shall be completed on or before 31st March, 2012:";

(ii) in

S.6 Amendment of Act 32 of 1976

Section 6

In the Kerala Tax on Luxuries Act, 1976 (32 of 1976),--

(1) in section 2,--

(i) clause (ca) shall be omitted;

(ii) clause (fa) shall be omitted;

In the Kerala Agricultural Income Tax Act, 1991 (15 of 1991), after section 35, the following section shall be inserted, namely:--

"35A. Electronic filing and payment.--

Government may require the assessees to file returns, forms and other statements to be submitted by him under this Act and make the payment of tax, fee or other amounts due under this Act, electronically through the official website of the Commercial Taxes Department, in the manner as may be prescribed.".

S.8 Amendment of Act 30 of 2004

Section 8

In the Kerala Value Added Tax Act, 2003 (30 of 2004),--

(1) in section 4, in sub-section (6), the following sentence shall be added at the end, namely:--

"The Bench or Benches shall ordinarily sit at such places as the Government may, by notification, specify.";

In the Kerala Finance Act, 2008 (21 of 2008), in section 6, to sub-section (1), the following proviso shall be added, namely:--

"Provided that the rate of cess payable under this section shall be six per cent on the tax payable under section 5(1)(b) of the Kerala General Sales Tax Act, 1963 (15 of 1963).".

S.10 Levy and collection of cess on luxury cars

(1) There shall be levied and collected, in accordance with the provisions of this section, for the purpose of the State, a cess to be called the Essential Necessities Cess, at the rate of two per cent on the output tax due under section 6 of the Kerala Value Added Tax Act, 2003 (30 of 2004) on the sale of cars, the sale price of which exceeds rupees twenty lakh, to fulfill the commitment of the Government to provide and finance a comprehensive scheme for the essential necessities to the general public.

(2) The State Government may, after due appropriation made by the Legislature by law in this behalf, utilise such sums of money of the Essential Necessities Cess levied for the purposes specified in sub-section (1) as it may consider necessary.

(3) The provisions regarding the assessment and recovery in the Kerala Value Added Tax Act, 2003 (30 of 2004) shall mutatis mutandis apply to cess under this section.

(1) There shall be levied and collected, in accordance with the provisions of this section, for the purpose of the State, a cess to be called the Housing Projects Cess, at the rate of two per cent on the building tax for residential buildings having a plinth area of 4000 sq. ft. and above, to fulfill the commitment of the Government to provide and finance the housing projects for the weaker sections, taken up by the Panchayaths.

(2) The State Government may, after due appropriation made by the Legislature by law in this behalf, utilise such sums of money of the Housing Projects Cess levied for the purposes specified in sub-section (1) as it may consider necessary.

(3) The provisions regarding assessment and recovery in the Kerala Building Tax Act, 1975 (7 of 1975) shall mutatis mutandis apply to the cess under this section.

(4) The provisions of sections 18 and 19 of the Kerala Building Tax Act, 197

S.12 Validation

(1) Notwithstanding the lapse of the Kerala Finance Bill, 2011 (Bill No. 426 of the Twelfth Kerala Legislative Assembly) (hereinafter referred to as the said Bill) and the cesser of force of law of the declared provisions of the said Bill, anything done or any action taken, including the levy and collection of tax or duty, during the period from the 1st day of April, 2011 to the 19th day of July, 2011, by virtue of the declared provisions contained in the said Bill, under the Kerala Surcharge on Taxes Act, 1957 (11 of 1957) or under the Kerala Stamp Act, 1959 (17 of 1959) or under the Kerala General Sales Tax Act, 1963 (15 of 1963) or under the Kerala Tax on Luxuries Act, 1976 (32 of 1976) or under the Kerala Value Added Tax Act, 2003 (30 of 2004) (hereinafter referred to as the 'respective Acts'), as they stand amended by the said Bill, shall be deemed to be and to have always been, for all purposes, validly and effectively done or taken under the provisions of the