Important Circulars: December 6

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vat

  • Circular/order: Kerala VAT:
  1. Instructions regarding contempt of court cases

The Kerala Government vide Circular No. 21/2016 dated November 19, 2016 has informed that communication regarding contempt of court cases is reaching to the Head Quarters at last minute only, causing huge administrative inconvenience. Thus, following instructions are issued in this regard-

  1. In any litigation, if order is passed by Hon’ble Supreme Court/ High Court or any Tribunal or Appellate Authority than such order should be implemented or should be challenged within stipulated time and a register should be maintained for these cases in all the offices in the Performa prescribed. Also, the details of each such cases and action to be taken along with other particulars shall be forward to controlling officer on monthly basis.
  2. The Information to headquarters should be provided on very next day for each contempt of court case and Deputy Commissioner (Law) needs to monitor these on daily basis.
  3. In case of any unfavourable High Court judgment, Deputy Commissioner (Law) should obtain legal opinion from Advocate General immediately and take action accordingly.
  4. In case of unfavourable Tribunal judgment, Law officer should communicate legal opinion to Assessing Authority and controlling officers immediately, for initiating further litigation.
  5. In case of unfavourable appellate order by appellate authorities, Deputy Commissioner concerned and Law officer to forward remarks on the order immediately on receipt of order to the authorities concerned for future litigation.

Read more at: http://www.keralataxes.gov.in/circular/Cir.21.16_opt.pdf

  1. Fryums to be taxable at the rate of 5%

The Kerala Government vide Order No.C3/32376/13/CT dated December 2, 2016 has clarified that papad and fryums are two clearly distinguishable products. Hence, in the context of Kerala Value Added Tax Act, 2003 (“the Kerala VAT Act”), Entry 36 of the First Schedule i.e., ‘papad’ will not include or subsume ‘fryums’.

Further, it is clarified that Fryums would fall under Entry 49(2) of the Third Schedule to the Kerala VAT Act, attracting tax @5%.

Read more at: http://www.keralataxes.gov.in/clarification/32376.KVAT.13_2.pdf