THE
KERALA TAX ON LUXURIES RULES, 1976
SRO
No. 1273/76- In exercise of the powers conferred
by section 20 Kerala Tax on Luxury Act 1976 (32 of
1976) the Government of Kerala hereby make the following
Rules namely: -
1. Short title and commencement. -(1)
These Rules may be called the Kerala Tax on Luxuries Rules,
1976.
(2)
They shall come into force at once.
2.
Definitions. - In these rules, unless
the context otherwise requires.
(a)
the "Act" means the Kerala Tax on Luxuries
Act, 1976;
(b)
"Assessee" means a person by whom luxury
tax or any other sum of money is payable under the
Act and includes every person in respect of whom any
proceedings under this Act have been taken for the
assessment of luxury tax payable by him;
(c)
"Form" means a form appended to these Rules;
(d)
"month" means a calendar month;
(e)
"section" means a section of the Act;
3.
Filing of return. -(1) The return referred
to in section 5 shall be:-
(a)
in Form 1 in the case of a proprietor of a hotel and;
(b)
in Form 1A in the case of a stockist;
(c)
in Form 1AA in the case of a proprietor of a house
boat.
(2)
In the case of a hotel having more than one place
of business the return in FORM 1 shall be submitted
separately in respect of each such place of business
to the assessing authority having jurisdiction over
each such place of business and each such place shall
be assessed separately.
(3)
In the case of a stockiest having more than one place
of business the return in Form 1A shall be submitted
to the assessing authority having jurisdiction over
the area where the Head Office of Registered office
or Administrative Office of the stockist t is situated and
shall contain the value of goods sold or supplied
through all places of business within the state.
(4)
(i) In the case of Hose boat rented for accommodation
or residence leisurely cruising the proprietor shall
file the return in Form 1AA before the assessing authority
having the jurisdiction over the area were the House
boat is used.
(ii) in the case of proprietor of house boat having
more than one place of business, the return in Form
1AA shall be submitted to the assessing authority
having jurisdiction over the area were the Head office
or Registered office or Administrative office is situated.
(5)
Every proprietor of a hotel or a stockist or a proprietor
of a house boat liable to pay tax under this Act shall
submit monthly return prescribed in sub-rules (1)
on or before 10th day of every month to
the assessing authority referred to in sub-rule (2)
or sub-rule (3), as the case may be, showing the transactions
relating to the preceding month, together with a receipt
of a treasury chalan, crossed cheques or crossed demand
draft in favour of the assessing authority for the
amount of tax due.
(6)
The return (s) so submitted shall, subject to the
provision of sub-rule (7) be provisionally accepted.
(7)
If the return (s) submitted appears to be incorrect
or incomplete, or if no return is submitted
by the proprietor of the hotel/stockist or proprietor
of a house boat, the assessing authority may, after
making such enquiry as it may consider necessary and
after taking into account all relevant materials gathered
by it and after issuing a notice to the proprietor/stockist
calling upon him to produce his accounts to prove
the correctness or completeness of his return and
after scrutiny of the accounts, if any, produced by
the proprietor/stockist, assess the tax or taxes payable
for the month according to the best of its judgment,
after giving such proprietor/stockist a reasonable
opportunity of being heard and also to prove the correctness
or completeness of the return submitted by him and
serve upon such proprietor/stockist a notice in Form
No. II
(8)
If the-return is submitted without a treasury receipt,
crossed cheques or crossed demand draft for the full
amount of the tax payable in favour of the assessing
authority, he shall serve upon the proprietor of the
hotel/stockist or proprietor of a house boat, a demand
notice in Form No. IIA and the assessee shall pay
the sum demanded within the time and in the manner
specified therein.
3A
(1) Every proprietor of a hotel having not less than
five rooms to be rented out for accommodation for
residence shall make an application in FORM IB to
the assessing authority having jurisdiction over the
area where the hotel is situated for registering his
hotel under the Act on or before the May 31st
of every year of within 30 days from the date of commencement
of the business, whichever is earlier. The application
shall be accompanied by the fee specified in Section
4B of the Act.
(2)
On receipt of the application, the assessing authority
shall conduct such enquiry as he may deem fit and
may obtain any additional information as he may consider
necessary and pass orders granting the registration.
(3)
The certificate of registration shall be in FORM IC.
3B.
(1) Every proprietor of the house boat who rented
the house boat for accommodation for residence or
leisurely cruising shall submit an application in
Form 1AB to the assessing authority having jurisdiction
over the area where the proprietor in whose jurisdiction
the house boat is using for business purpose for registering
this house boat under the Act on or before 31st
May every year or within 30 days from the commencement
of business whichever is earlier. The application
shall be accompanied by a fee of one thousand rupees
per boat.
(2)
On receipt of the application the assessing authority
shall conduct such enquiry as he may thinks fit and
obtains additional information as he may consider
necessary and pass orders granting registration certificate
in form No: 1AC
(3)
The certificate issued under sub-rule (2) shall be
valid for a year and shall be renewed from year to
year on payment of the fee specified under sub-section
(2) of section 4C and continues to be valid on such
renewal.
4.
Annual return and final assessment.- (1)
Every proprietor of a hotel/stockist or proprietor
of a house boat, liable to pay luxury tax under the
Act, shall on or before the first day of May in every
year, submit to the assessing authority referred to
in sub-rule (2) or (3) respectively of rule 3, a return
in Form 1 or IA or 1AA, as the case may be, containing
the particulars referred to in sub-section (2) of
Section 5 relating to the preceding year.
(2)
Every proprietor of a hotel/stockist or proprietor
of a house boat, who discontinues his business during
the course of a year shall submit to the assessing
authority concerned a return in Form 1 or IA or 1AA,
as the case may be, for the period upto and inclusive
of the date of discontinuance of the business within
thirty days from the date of such discontinuance.
(3)
On receipt of the return the assessing authority shall,
if it is satisfied after such scrutiny of the accounts
and such enquiry as it considers necessary that the
return is correct and complete, finally assess on
the basis of the return the tax or taxes payable under
Section 4 or Section 4A for the year to which the
return relates.
(4)
If no return is submitted or if the return submitted
appears to the assessing authority to be incorrect
or incomplete, the assessing authority may, after
making such enquiry as it may consider necessary and
after taking into account all relevant materials gathered
by it and after issuing a notice to the proprietor
of the hotel/stockist or proprietor of a house boat
calling upon him to produce his accounts to prove
the correctness or completeness of his return at a
time and place to be specified in the notice and after
scrutiny of the accounts, if any, produced by the
proprietor of the hotel/stockist or proprietor of
a house boat, finally assess the tax payable under
section 4 or section 4A according to the best of its
judgment after giving the assessee a reasonable opportunity
of being heard and also to prove the correctness or
completeness of the return submitted by him and serve
upon the assessee a notice of assessment and demand
in FORM No. II.
(5)
In the case of a proprietor of a hotel/stockist who
have filed monthly returns for the period prior
to 1-4-1996, and assessments in respect of whom are
pending as on the date of coming into force of this
sub-rule such assessments shall be completed on annual
basis as per this rule notwithstanding that no annual
return has been filed under sub-rule (1).
4A.
Payment of penalty.- (a) The assessing authority
shall impose a penalty as provided under sub-section
(3) of section 6 and serve upon the assessee a demand
notice in Form IIA.
(b)
The penalty shall be remitted into the Government
treasury or paid by means of crossed cheques or demand
draft in favour of the assessing authority concerned.
4B.
Mode of Payment of Interest: - (1) The interest
payable under sub-section (1) of section 10 shall
be remitted in to the Government Treasury or paid
by means of crossed cheque or crossed demand draft
in favour of the assessing authority concerned drawn
on a bank within jurisdiction of the assessing authority
and having treasury transactions, either separately
or along with the tax.
(2)
the assessing authority concerned may calculate the
interest payable under sub-section (1) of section
10 from time to time and may issue a notice in form
II. On receipt of the notice, the dealer shall pay
the interest due in the manner specified in sub-rule(1).
Explanation:-
The dealer or other person concerned shall however
be liable to pay the interest under sub-section (1)
of section 10 whether he receives a notice under this
sub-rule or not.
5.Maintenance
and preservation of accounts.- (1) Every
proprietor shall , keep true and correct accounts
in respect of each room in the hotel/ house boat intended
to be occupied showing all the details specified in
FORM I. Every owner or lesser of a house boat shall
keep true and correct accounts in respect of the rent
received per day per boat in Form IAA.
(2)
The proprietor shall keep printed bill books, the
pages of which shall be serially numbered and affixed
with the seal of the assessing authority.
Provided that affixing the seal of the assessing
authority on the bills shall not be required in the
case of Hotels and Lodging Houses which issue computerized
bills".
(3)
The proprietor shall issue bills referred to in sub-rule
(2) to the occupants for the amounts realised showing
separately the charges for accommodation, food, drink
and telephone calls and the luxury tax collected under
the Act.
(4)
The proprietor shall keep a stock register for each
month showing the number of bills got sealed by the
assessing authority and the number of bills issued
during the month.
(5)
Every stockist shall keep and maintain the following
registers, namely:-
(i)
books of accounts disclosing true and complete accounts
of his daily transactions in Malayalam or English
showing the commodity produced, manufactured, bought,
sold, despatched or supplied by him and the value
thereof separately together with the vouchers and
bills;
(ii) a daily cash book;
(iii)
a journal, where the accounts are maintained, according
to mercantile system of accounting;
(iv) a ledger; and
(v) a stock register.
(6)
Every stockist shall keep the current books of accounts
at the place of business, building, godown or any
other place where the commodity is stored for transaction.
Every purchase, sale or supply shall be brought to
account then and there as soon as the purchase or
sale is effected.
(7)
Every stockist shall maintain day-to-day stock account
of the commodities dealt by him. The stock account
shall contain particulars of purchase or receipt,
sales or deliveries and balance stock.
(8)
Every stockist shall issue a sale bill or cash memorandum,
in respect of every sale. Where the supply is not
in pursuance of a sale, the stockist shall issue a
delivery chalan. The sale bill or cash memorandum
or delivery chalan shall bear the name and address
of the stockist with his trade name, if any, quantity
and value of the commodity sold or supplied and the
full name and address of the purchaser. It shall be
signed and dated by the stockist or his authorised
agent. The serial numbers assigned to the bills or
cash memorandum or delivery chalan shall run consecutively
for the whole year.
(9)
Every stockist while delivering, any commodity to
another stockist in pursuance of a sale where no sale
bill is issued or every person who consigns goods
by any vehicle or vessel or any other means in pursuance
of a sale where a sale bill is not issued or consigns
goods through the said means from one godown to another
or from one of his business place to another for the
purpose of storage, sale or supply shall issue a delivery
note as specified in sub-rule (3) of Rule 5A.
(10)
Accounts maintained by a stockist together with all
vouchers, bills, declarations, delivery chalans and
delivery notes relating to stocks, deliveries, supplies,
purchases, output and sales shall be preserved by
him for a period of two years from the date of completion
of the final assessment of the year to which they
relate or from the date of disposal of the appeal
or revision arising out of such assessment or from
the date of completion of any other proceedings under
the Act connected with such assessment or appeal or
revision, whichever is later and shall be kept at
the place of business.
5A.
- (1) No person shall transport within the State any
commodity included in the schedule to the Act, if
the value there of exceeds Rupees one hundred, by
any vehicle, vessel, or other conveyance of by animal
load, unless he is in possession of a bill of sale
or delivery note.
(2) The bill of sale shall contain the particulars
prescribed under sub-rule (12) of Rule 32 of the Kerala
General Sales Tax Rules, 1963.
(3) The delivery note referred to in section
12A shall be in Form No. 26 prescribed under sub-rule
(17) of Rule 32 of Kerala General Sales Tax Rules,
1963.
5B.
Mode of disposal of seized properties. - (1) An
officer seizing the commodity under section 12B shall
cause to be published in the notice board of his office,
a notice under his signature specifying the details
of the commodity seized and intended for sale, the
place and the day and hour at which the seized commodity
will be sold and shall display copies of such list
and notice in more than one public place in or around
the place in which the commodity was found.
(2) No sale shall take place before the expiry of
a period of fifteen days from the date on which the
notice is affixed.
(3) The authority who seized the commodity shall conduct
the auction in person and the commodity shall be made
available at the place of sale.
(4) At the appointed time, the commodity shall be
put in one or more lots, as the authority conducting
the sale may consider advisable and shall be knocked
down in favour of the highest bidder subject to confirmation
of sale, by the officer authorized under sub-section
(1) of Section 12B of the Act where the value of the
commodity auctioned does not exceed ten thousand rupees
by the Deputy Commissioner appointed under sub-section
(2) or section 3 of the K.G.S.T. Act, 1963 (15 of
1963), having jurisdiction over the area, in other
cases.
(5)
The auction purchaser shall pay the sale value of
the commodity in cash immediately after the sale and
he shall not be permitted to carry away the commodity
unless the amounts are paid in full.
(6)
Where the purchaser fails to pay the sale value of
the commodity in cash, the commodity shall be resold
at once and the defaulting purchaser shall be liable
for any loss arising there from as well as the expenses
incurred on the resale.
(7)
Notwithstanding anything contained in the foregoing
sub-rules, if the commodity seized are of a perishable
nature or subject to speedy and natural decay or when
the expenses of keeping them in custody are likely
to exceed their value, the commodity, shall be sold
by the officer seizing them immediately after such
seizure.
5C. Search and seizure. - (1) The
authorization under the proviso to sub-section (3)
and clause (b) of sub-section (7) of section 13 shall
be in Form IIB and shall be in writing under the signature
of the authority issuing it and shall bear the seal
of such authority.
(2)
Any person in charge of any building, place, godown,
vessel, vehicle, other conveyance, box or receptacle
shall, on demand by an assessing authority and any
person in charge of any residential accommodation
shall on demand by an assessing authority authorised
under sub-section (3) of Section 13 and on production
of authorization, allow such authority free ingress
thereto and access to the contents of any box or receptacle
and afford all reasonable facilities for a search
therein.
(3)
If ingress to such building, place, godown, vehicle,
vessel, other conveyance or residential accommodation
or access to the contents of any box or receptacle
cannot be so obtained, under sub-rule (2) it shall
be lawful for such authority with such assistance
of the police or other officers of the State Government
as may be required, to enter such building, place,
godown, vehicle, vessel, other conveyance or residential
accommodation or to have access to the contents of
any box or receptacle and search therein and in order
to effect such entrance or access, to break open any
box or receptacle or any outer or inner door or window
of any building, place, vehicle, vessel, other conveyance
or residential accommodation, whether that of the
person, to be searched or of any other person if,
after notification of his authority and purpose and
demand of admittance duly made, he cannot otherwise
obtain admittance or access.
Provided
that, if any such vehicle, vessel, building, place
or residential accommodation is occupied by a female
(not the person to be arrested) who, according to
custom, does not appear in public, the authority shall,
before entering such vehicle, vessel, building, place
or residential accommodation, give notice to such
female that she is at liberty to withdraw and shall
afford her every reasonable facility for withdrawing
and may then break open such vehicles.
(4)
The assessing authority may, if the owner or any other
person in occupation or in immediate possession or
control of any box or receptacle, godown, building
or residential accommodation in which any goods, accounts,
registers, records or other documents or are reasonably
believed to be kept, leaves the premises or refuses
to open the box or receptacle, godown, building or
residential accommodation or is not available and
such officer considers it not practicable to exercise
the power or breaking open immediately, seal such
box or receptacle, godown, building or residential
accommodation and serve, an order on the owner of
the person who is in immediate possession of control
thereof that he shall not open, remove, part with
or otherwise deal with such box, receptacle, godown,
building or residential accommodation.
(5)
Where any person has got out of or is about to get
into or is in any place referred to in Section 13
and the assessing authority has reason to suspect
that such person has secreted about his person any
goods or accounts, registers, records or other documents,
such person may be searched by such authority with
such assistance as he may consider necessary. If such
person is a woman the search shall be made by another
woman with strict regard to decency.
(6)
Where any assessing authority conducts a search of
any person, office, shop, place of business, residential
accommodation, godown, vessel, receptacle, vehicle
or any premises or place where any books of accounts
of a stockist may be, or are reasonably suspected
to be kept, he shall, as far as may follow the procedure
prescribed in the Code of Criminal Procedure, 1973
(Central Act 2 of 1974).
(7)
If on search, the assessing authority finds any accounts,
registers or other documents which he has reason to
suspect that the proprietor or stockist is maintaining
with a view to evading the payment of any tax or fee
due from him under the Act, he shall, for reasons
to be recorded in writing, seize such accounts registers
and documents of the proprietor or stockist as may
be necessary and shall give the proprietor or stockist
a receipt for the same. The accounts and registers
so seized shall be returned to the proprietor or stockist
within thirty days and in cases where permission of
the next higher authority under section 13 has been
obtained, within sixty days from the date of seizure,
unless they are required for a prosecution.
(8)
When any accounts, registers or documents of a proprietor
or stockist seized by any assessing authority have
to be returned to the proprietor or stockist, such
return may be made after taking such extracts there
from as may be considered necessary. The authority
making the return shall affix his signature or official
seal or both on such accounts, registers or documents
and the proprietor or stockist shall give a receipt
in acknowledgement, which shall mention the details
of the records returned and the number and particulars
of the places where the signature or the seal, or
both have been affixed on the accounts, registers
or documents returned to him.
(9)
When any accounts, registers or documents are inspected
or examined by any authority empowered in this behalf
such authority shall affix his signature, or official
seal or both at one or more places therein.
(10)
If any assessing authority while inspecting or searching
any place finds therein any commodity not accounted
for by the stockist in his accounts and other records
such authority shall prepare a list of such commodity
and get it signed by two respectable witnesses. One
copy of such list shall be given or tendered to the
stockist or the person in charge of the place.
(11)
The authority directing payment of penalty under sub-section
(8) of section 13 shall serve a notice of demand on
the stockist in FORM IIA on receipt of the notice,
the stockist shall remit the amount of penalty specified
in the notice into a Government treasury or pay the
same by means of crossed cheques or crossed demand
draft in favour of the assessing authority on whose
rolls he is an assessee and intimate the fact to the
authority directing payment of penalty.
6.
Filing of appeal to the appellate authority. - (1)
Appeals under section 7 shall be in Form III.
(2)
Every appeal shall be in duplicate and shall be accompanied
by the original or a certified copy of the order appealed
against.
(3) Every appeal shall be accompanied by a fee of
rupees one hundred.
7.
Filing of Revision. - (1) Application for revision
under Section 8 shall be in Form IV.
(2)
Every application for revision shall be in duplicate
and shall be accompanied by the original or certified
copy of the order against which application for revision
is filed.
(3)
Every application for revision shall be accompanied
by a fee of rupees two hundred and fifty, which shall
in no case be refunded.
8.
Payment of fees on interlocutory applications. -
(1) Fees at the rates mentioned in section 9 shall
be paid on the following interlocutory applications.
(a)
application for staying the collection of any tax
or other amount which is disputed in appeal, revision
or other proceedings, as the case may be;
(b)
application for advancing the hearing of any appeal,
revision or other proceedings, as the case may be;
(c)
application for condonation of delay in filing any
appeal, revision or other application, as the case
may be.
(2)
The interlocutory applications mentioned in sub-rule(1) shall
be in Form IVA.
8A.
Production of authorisation. - The authorisation
referred to in sub-section (2) of section 9 shall
be in Form II C and it shall bear Court Fee stamp
worth Rs.25 (Rupees twenty five only)
9.
Service of Notice. - If none of the modes
for service of notice specified in section 11 is practicable,
notice may be served by affixing it in some conspicuous
part of the last known place of business or residence
of the person.
10.
Refund payment order. - Where refund is to
be made, the assessing authority shall issue a refund
order in Form V to the party concerned and simultaneously
give due intimation to the Treasury Officer concerned
regarding the issue of refund order.
11.
Set off and Refund. - On receipt of a claim for
refund, the assessing authority shall set off such
amount as may be outstanding towards luxury tax or
penalty against the claimant and shall effect a refund
of the balance amount to the applicant.
12.
Proprietor to declare name of Manager. - When
a Manager is appointed for management of the Hotel,
a declaration in Form VI shall be filed by the owner
of the Hotel.
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