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The
said Cess is a collectable levy in cases where the
collection of tax is permitted under section 30 of KVAT
Act, 2003 and under section 22 of the KGST Act 1963.
Dealers
entitled for input tax credit under section 11 of the
KVAT Act, 2003 would also be eligible for credit of the
Cess against the actual Cess paid on the purchase of
such goods.
In
the case of the KVAT Act, the Social Security Cess shall
be levied at one percent
•
on the output tax due and/ tax due u/s 6(2), in the case
of dealers paying tax under section 6
•
on the tax due under sub section (5) of section 6, in
the case of dealers paying presumptive tax under the
said section, and
•
on the ‘gross compounded tax due’ in the case of
dealers paying tax under section 8.
Awarders
who are deducting tax at source under section 10 of the
KVAT Act shall also have to deduct the Cess while
effecting payments.
In
the bill format the Cess has to be mentioned separately.
For this purpose an additional row for collection
of Cess may be provided and the amount of Cess shown in
the bill format after the space
showing total tax collection.
In
the Returns to be submitted by dealers also the Cess has
to be shown in the ‘tax due’ and ‘tax credit’
portion separately in the summary statement as under:
•
in the case of Form No 10, in part I(A),
•
in the case of Form 10B, in part M
•
in the case of Form 10D, an additional row for Cess may
be provided in the respective parts, and
•
in the case of Form 10A, the Cess shall be shown by
providing a new serial number after 9 as ‘9(a)’.
In
the case of the KGST Act, the Social Security Cess has
to be levied on all taxes payable under the Act. This is
a collectable levy other than that of turnover tax. In
the Return, the Cess details has to be entered as sub
item (d) to items (i), (ii) and (iii) of serial No 7 of
form No 9.
Necessary
amendments in this regard will be made in the statutes.
The
said provision shall take effect from the 1st day of
April, 2008 under the Kerala Provisional Collection of
Revenue Act, 1985 (10 of1985).
All
Officers shall see that the said provisions are strictly
complied with.
Commissioner
Commercial
Taxes. |
