Amendment status not verified — confirm the current text below against the official source.
In the Kerala Value Added Tax Act, 2003 (30 of 2004),-- (1) in section 4, in sub-section (4), in item (v), for the words, "other than the Chairman", the words, "other than the Chairman of the Appellate Tribunal or the Judicial Officer not below the rank of a District Judge of the Additional Appellate Tribunal", shall be substituted. (2) after section 25A, the following section shall be inserted, namely:-- "25AA. General disciplines related to assessment under this Act.-- (1) In cases where tax evasion has been detected and the offence has been compounded or penalty has been imposed under this Act, the assessment under the provisions of this Act shall be done only on the suppressed turnover detected: Provided that in cases where pattern of suppression has been established, the assessment shall be completed by adding fifty percent of the suppressed turnover. (2) In case of assessments initiated from the scrutiny of electronically filed returns, annexures and other declarations,-- (a) with respect to unaccounted purchases from registered dealers within the State by dealers, notwithstanding anything contained in this Act, input tax credit shall be granted on such purchases, provided the dealer admits such purchases. In such cases, assessment shall be completed by adding 20 percent gross profit on the purchase value. (b) In case of detection of suppression or variation in inter-State purchases, inter-State stock transfers, import and purchases from unregistered dealers, 25 percent gross profit shall be added to such purchases for arriving at the sale value and assessed to tax. (c) If sale suppression is detected, the suppressed turnover shall alone be assessed, without any additions. (3) Discounts, incentives and other income shown in trading, profit and loss account shall be assessed only if, it affects the output tax or input tax credit. (4) Suppressed turnover of works contractors and cooked food dealers who have paid compounded tax under clauses (a) and (c) of section 8 shall be assessed at the applicable compounded rate by adding 25 per cent of the suppressed turnover and in such cases the option of compounding shall not be cancelled. (5) If any suppression of turnover of gold is detected with respect to dealers who have paid compounded tax under clause (f) of section 8, such suppressed turnover alone shall be assessed at the schedule rates applicable to the goods and in such cases the option of compounding for that year shall not be cancelled. (6) If any interstate purchases are detected with respect to a cooked food dealer paying tax under sub-clause (i) of clause (c) of section 8 in violation of item (d) of the said sub-clause, such purchases shall alone be assessed to tax by adding 20 percent gross profit, and the compounding for the years shall not be cancelled. (7) Those dealers, who have defaulted in submitting the statutory forms for applying concession or exemption in tax under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) or under this Act, assessment shall be limited only to such turnover not covered by such statutory forms. (8) If any difference in turnover is disclosed in annual return, trading, profit and loss account and audit report, is noticed, subject to other provisions of this Act, the assessment in such cases shall be limited only to such variation. (9) in case of variations between return and books of accounts pointed out voluntarily by the dealer subject to the returns annexures and statements filed by the dealer assessment shall be limited to such differential turnover only.". (3) in section 25E,-- (i) in sub-section (2), for the words and figures, "30th June, 2018", the words and figures, "30th September, 2019", shall be substituted; (ii) in sub-section (5), for the words and figures, "30th September, 2018", the words and figures, "31st March, 2020", shall be substituted. (4) for section 31A, the following section shall be substituted, namely:-- "31A. Reduction of arrears in certain cases.-- (1) Notwithstanding anything contained in this Act or rules made thereunder or in any judgment, decree or order of any court, tribunal or appellate authority, any assessee who is in arrears of tax or any other amount due under this Act or under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) relating to the period up to and including 30th June, 2017, may opt for settling the arrears on payment of the principal amount of the tax in arrears by availing a complete reduction of the penalty amount, interest on the tax amount and on the penalty amount: Provided that in case where the evidence, details and records pertaining to the penalty levied is not utilized or not liable to be utilized for any best judgment assessment under this Act, the demand relating to such penalty shall be settled under this section on payment of applicable tax relating to the penalty as determined by the assessing authority. (2) Notwithstanding anything contained in the Kerala Revenue Recovery Act, 1968, (15 of 1968) reduction of arrears under sub-section (1) shall be applicable to those cases in which revenue recovery proceedings have been initiated and the assessing authorities shall have the power to collect such amounts on settlement under sub-section (1) and where the amount is settled under sub-section (1) the assessing authorities shall withdraw the revenue recovery proceedings against such assessees which will then be binding on the revenue authorities and such assessees shall not be liable for payment of any collection charges. (3) The assessee shall withdraw all the cases pending before any appellate or revisional authority, tribunal or courts for opting for settling the arrears under this section. (4) All arrears including tax and penalties pertaining to a year shall be settled together under this section. (5) An assessee who intends to opt for payment of arrears under sub-section (1) shall submit an option to the assessing authority on or before 30th September, 2019: Provided that with respect to demands generated after 30th September, 2019, the option may be filed within 30 days from the date of receipt of the order and in such cases the final payment of tax and other amounts due as per this section shall be completed on or before 31st March, 2020. (6) The arrears for the purpose of settlement under this section shall be calculated as on the date of submission of option. (7) On receipt of the option under sub-section (5), the assessing authority shall determine the amount of tax and other amounts due from the dealer under sub-section (1) and shall intimate the same to the dealer, and thereupon the dealer shall remit the amount in a maximum of six instalments on or before 31st March, 2020. (8) Notwithstanding anything contained in section 91, if an assessee who opts to settle his arrears under sub-section (1) has remitted or deposited any amount relating to the arrears after the service of demand notice, such amounts shall be given credit as tax including the tax paid under clause (a) of sub-section (1) of section 74, such amount shall be given credit as tax under this option and the assesse shall furnish the proof of payments made in this regard: Provided that any amount paid towards penalty or interest thereon shall not be credited towards tax. (9) There shall not be any refund or any adjustment subsequently for the amount settled under this scheme, under any circumstances.". (5) in section 31B,-- (i) in clause (a), for the words and figures, "30th April, 2018" and "31st May, 2018", the words and figures, "30th April, 2019" and "30th September, 2019" shall respectively, be substituted. (ii) in clause (b) for the words and figures, "30th April, 2018" and "31st March, 2019, whichever is earlier" the words and figures, "30th April, 2019" and "30th September, 2019" shall respectively, be substituted. (6) in section 42, in the second proviso, to sub-section (2), for the words and figures, "30th June, 2018", the words and figures, "30th September, 2019" shall be substituted.".