No. C1-33756/95/TX                                   Office of the Board of Revenue (Taxes),

                                                                     Thiruvananthapuram, Dt. 5.8.1995

Circular No. 19/95/TX

Sub:     KGST Act, 1963 – Amendment of Sec. 14(1) of the Act -
Enhancement of Registration Fee increase in the scale of compounding
fee for belated payment of Registration Fee – instructions issued –

Ref:      Board’s Circular No. 37/84/TX dt. 22-8-84

……………..

Attention of all officers is invited to Board’s Circular cited by which the scale of compounding fee for belated payment of Registration fee was increased consequent on the enhancement of Registration fee from Rs.10/- to Rs.50/- with affect from 1.4.83 as per Act 3 of 1983. Subsequently the rate of registration fee was enhanced, as per Act 18 of 1987. Again Section 14(i) of the KGST Act, 1963 was amended by the Kerala Finance Act, 1988 (Act 17 of 1988) enhancing the rate of registration fee on the basis of the total turnover of the dealer for the year. The rate of registration fee so fixed was again enhanced as per the Kerala Finance Act 1992 (Act 18 of 1992) and the Kerala Finance Act 1993 (Act 13 of 93).

Board had fixed the rate of compounding fee for the belated payment of Registration fee vide Circular No. 37/84/TX dt. 22-8-84 as follows, when the Registration fee was Rs.50/-.

Period of delay                            Compounding fee

For delay upto 3 months              Rs.10/-

For delay upto 6 months              Rs.25/-

For delay exceeding 6 months      Rs.50/-

For the delay in the renewal of branch registration, the following scale of compounding fee was also fixed.

Period of delay                            Compounding fee

For delay upto 3 months              Rs.5/-

For delay upto 6 months              Rs.12/-

For delay exceeding 6 months      Rs.25/-

This rate of compounding fee has not been changed even though the quantum of registration fee has been considerably enhanced. In the registration fee, it has become necessary to revise and refix the scale of compounding fee for belated renewal of registration certificates in proportion to the enhancement in the raw f registration fee.

In the circumstances, the scale of compounding fee for the offence of failure to renew the registration certification in time in therefore revised as under.

Period of Delay                           Compounding Fee

                                                   For those paying              For those paying

                                                   A Rgn.fee of Rs.250/-     Regn.fee of Rs.100/-

                                                   And above

For delay upto 3 months              10% of Regn.Fee due      Rs.10.00

For delay above 3 months            15% of Regn.Fee due      Rs. 20.00

Upto 6 months

For delay exceeding 6 months      Rs.25%- of Regn.            Rs.50.00

upto One year                             fee due.

For delay exceeding 1 year          100% of Regn. Fee         Rs.100.00

                                                   due

All Officers shall note the above changes in the scale of compounding fee and ensure that the compounding fee for belated payment of registration fee is realised in all deserving cases at the rate prescribed.

All Deputy Commissioners are requested to acknowledge the receipt of the Circular and obtain acknowledgement from their sub offices.

                                                                     Sd/-

                                                       Secretary (Taxes – II)