SUMMARY OF TAX IMPLICATIONS OF KERALA BUDGET-2013

SUMMARY OF TAX IMPLICATIONS OF KERALA BUDGET-2013

             1. Rates of tax has been changed for the following commodities under KVAT Act.

		Old Rate	New Rate
1	All Commodities presently falling under 13.50% Vat Category	13.50%	14.50%
2	Rice and Rice Products	1%	0%
3	Cigarettes and similar products excluding Beedi	15%	20%
4	Foreign Liqour excluding Beer and wine	100%	105%
5	Disposible Cups,Plates, Leaves, polypropylene carry bags made of plastic	5%	20%
6	Water bed	13.50%	5%
7	Municipal Plastic waste	13.50%	5%
8	Lead Oxide	13.50%	5%
9	Ice	5.00%	1%
10	Solar Energy Devices & Parts	5.00%	1%
11	Agro Shade nets/HDPE Woven Fabrics	13.50%	5%
12	Cardamom Sold through authorised auction centres of Spices board	5.00%	2.00%

2. Change in Due Dates for filing statements under KVAT Act.

	Old Date	New Date
Annual return and annexures	30th April	31st May
Audited Statements by Non Company dealers	31st Oct	31st Dec
Audited Statements by Company dealers	31st Dec	31st Jan

3.       United Nation Organisation and other similar international organisations will be exempted from luxury Tax. 

4.       Commodities sold by Theeramythri Units* under their brand name will be exempted

*(Theeramythri is a Welfare unit of Womens under the Fisheries Department) 

5.       Presently rate of vat on Footwear valued above Rs.200 is 13.50% and footwear valued upto Rs.200 is 5%. It is proposed to increase the limit to Rs.500 

6.       Gloves for house hold use will be brought under the category -Rubber Latex (Dipped Goods/Industrial/Agicultural Gloves, Finger Caps) which is  taxable at 5%.

7.  Presently cooked food and beverages served in house boats is exempt for dealers who have opted for compounding scheme under luxury tax. It is proposed to grant the exemption with retrospective effect from 2006. 

8.       The Permission will be granted to use both manual and Online Form 15 Delivery Notes.

9.Presently compounding dealers opting to avail input credit can file declaration in Form 25A within 15 days from reaching the turnover limit and switchover to normal scheme. It is proposed to increase the time period to 30 days 

10.   New provisions will be included under the Luxury tax act and Money lenders act to enable the dealers to revise the electronically filed returns. 

11.   Online Facility will be extended for the following:

·         Application for Amending the registration certificate

·         Application for CST Registration.

·         To view the profile of the dealer

·         Online payment of security deposit collected by Intelligence squad and Check post.

·         Online payment of TDS to be deducted and remitted by Contract awaders.

·         Refund applications and refund orders.

·         The refund amount will be credited directly to the bank account of dealers. Since now the state treasury is not fully computerized, the dealers will be given tax credit in the subsequent returns and when the computerization is completed, the online refund facility will be implemented.

12.The maximum amount payable on composition of offences under KGST Act and luxury Tax act will be limited to Rs.8 lakhs.

13.   The Deputy Commissioner will be given the power to extend the time limit to complete the assessments under KVAT Act and Luxury Tax act.

14.   The time limit for completing the pending assessments under KGST Act, KVAT Act and Luxury Tax Act till 31.03.2013 is extended by one year. 

15.   The Annual License Fees for Money Lenders increased from Rs.3000 to Rs.10,000

  

16.   New Schemes implemented by the kerala budget 2013

v   Tax on MRP for Cigarettes and similar commodities

Ø  Option has been granted to Traders and Manufacturers of Cigarettes and similar commodities excluding beedi to pay Tax on MRP Value on First Sale. Subsequent sales will be exempted. 

v   A new One Time Scheme to Encourage Vat Registration of Dealers

Ø  The Scheme will be in force during 1st April 2013 to 30th September 2013.

Ø  Dealers who are liable to take registration can voluntarily apply for registration.

Ø  The Scheme will not be available for Importers, Manufacturers, Works Contactors, and dealers on whom departmental action has been initiated before 01.04.2013.

Ø  No enquiry will be conducted on any tax liability relating to prior period.

Ø  The dealers will be fully exempted from the tax dues relating to the prior period.

v  Amnesty Scheme 2013

Ø  The dealers can settle their KGST tax arrears upto 31.03.05 through this scheme.

Ø  The aspiring dealers have to remit the tax arrears before 31.12.2013

Ø  The dealer opting for the scheme has to withdraw their appeal if any pending before the court or other appellate authorities.

Ø  The dealer opting for the scheme cannot appeal before any court or other appellate authorities on the issue settled through the scheme.