In exercise of the powers conferred by Section 92 of the Kerala Value Added Tax Act, 2003 (30 of 2004), the Government of Kerala hereby make the following Rules. -

CHAPTER - I

PRELIMINARY

1. Short title and Commencement: - These Rules may be called “the Kerala Value Added Tax Rules, 2005.” They shall come into force on the first day of April, 2005

2. Definitions:- In these Rules, unless the context otherwise requires-
(a) “the Act” means the Kerala Value Added Tax Act, 2003;
(b)“civil structure” means any building, including any temporary or permanent structure, water tank, well, road, bridge, compound wall or other similar structure attached to land.”
(c) “designated bank” means any bank having treasury transactions or such other bank notified by Government to receive any amount due under the Act on behalf of Government.
(d)”digital signature” means authentication of any electronic record by a subscriber by means of an electronic method or procedure in accordance with the provisions of section 3 of the In formation Technology Act, 2000;
(e) “digital signature certificate” means a Digital Signature Certificate issued under sub-section (4) of section 35 of the Information Technology Act, 2000;
(f) “electronic record” means data, record or data generated, image or sound stored, received or sent in an electronic form or micro film or computer generated micro fiche;
(g)“form” means a form appended to these Rules;
(h)“Government Treasury” means a District Treasury or Sub-Treasury or Additional Sub Treasury of the State Government;
(i) “key pair”, in an asymmetric crypto system, means a private key and its mathematically related public key, which are so related that the public key can verify a digital signature created by the private key;
(j) “month” means a calendar month;
(k) “private key” means the key of a key pair used to create a digital signature;
(l) “public key” means the key of a key pair used to verify a digital signature and listed in the Digital Signature Certificate;
(m)“quarter” means a period of three months commencing on the first day of April or the first day of July or the first day of October or the first day of January in each year;
(n) “Schedule” means a schedule appended to the Act;
(o)“section” means a section of the Act;
(p) “secure digital signature” means such digital signature satisfying the requirements of section 15 of the Information Technology Act, 2000;
(q)“State Representative” means an Officer appointed by the Government to receive on their behalf notices and orders issued by the Appellate Tribunal or any other authority under the Act and generally to appear, act, plead and file any petition, affidavit or statement before the Appellate Tribunal or any other authority under the Act on behalf of the state and includes an officer appointed to act on his behalf in his absence;
(r)”verify” in relation to a digital signature, electronic record or public key, with its grammatical variations and cognate expressions means to determine whether-
(a) the initial electronic record was affixed with the digital signature by the use of private key
corresponding to the public key of the subscriber;
(b) the initial electronic record is retained intact or has been altered since such electronic record was so affixed with the digital signature.
Explanation:- For the purpose of this clause “subscriber” means a person in whose name the Digital Signature is issued.

CHAPTER - II

APPELLATE TRIBUNAL AND SETTLEMENT COMMISSION

3. Appellate Tribunal: - Of the members of the Appellate Tribunal (other than its Chairman) appointed under section 4:-
(i) one member shall be from Officers of the Commercial Taxes Department of the Government not below the rank of Joint Commissioner; and
(ii) the others shall be Chartered Accountants as defined in the Chartered Accountants Act, 1949, or class I Officers of the Indian Audit and Accounts Service, having not less than three years service as such in revenue audit or officers not below the rank of Joint Commissioner of Income Tax of the Indian Revenue Service.
4. Appointment of Chairman of the Appellate Tribunal: - (1) The appointment of the Chairman shall be made by the Governor of Kerala:
Provided that appointment by transfer shall be made from a panel of three names prepared in consultation with the High Court.
(2) Every person appointed as Chairman, Appellate Tribunal shall, from the date on which he joins duty, be on probation for a period of 2 years on duty within a continuous period of 3 years:
Provided that (i) when a District Judge or Additional District Judge or a person who has been a Judicial Officer not below the rank of a District Judge who has successfully completed probation as District Judge or Additional District Judge, as the case may be, is appointed as Chairman, no probation shall be necessary.

(ii) When a probationary District Judge or Additional District Judge or a person who has been a Judicial Officer not below the rank of a District Judge, as the case may be, is appointed as the Chairman, the period of probation undergone by him in the cadre of District Judge shall be counted for the purpose of probation for the post of Chairman.

5. Pay, Allowances and other conditions of services of Chairman:- Rules relating to pay, allowances and other conditions of service applicable to Government servants or retired Government servants, as the case may be, in general, not inconsistent with these rules, shall unless specific provisions are made in these rules, apply to persons appointed as Chairman, Appellate Tribunal.
6. Settlement Commission:- (1) The Head quarters of the Settlement Commission shall be at such place as the Government may notify in the Official Gazette and it shall have sittings at different parts of the State as the Chairman may fix from time to time.
(2) Of the members of the Settlement Commission (other than its Chairman) appointed under section 5, one member shall be from Officers of the Commercial Taxes Department of the Government not below the rank of Joint Commissioner; and the others shall be Chartered Accountants as defined in the Chartered Accountants Act, 1949, or class I Officers of the Indian Audit and Accounts Service, having not less than three years service as such in revenue audit or officers not below the rank of Joint Commissioner of Income Tax of the Indian Revenue Service.

7. Appointment of Chairman of the Settlement Commission: - (1) The appointment of the Chairman, Settlement Commission shall be made by the Governor of Kerala from a panel of three names prepared in consultation with the High Court.

8. Pay, Allowances and other conditions of services of Chairman:- Rules relating to pay, allowances and other conditions of service applicable to judicial officers not inconsistent with these rules, shall, unless specific provisions are made in these rules, apply to persons appointed as Chairman, Settlement Commission.

* * *

CHAPTER - III

INCIDENCE AND LEVY OF TAX

9. Determination of total turnover:- (1) The total turnover of a dealer for the purposes of these rules shall be the aggregate of-
(a) the amount for which goods are sold by the dealer; and

(b) the amount for which goods, the purchase of which is liable to tax under sub- section(2) of section 6 , are purchased by the dealer.

(2) For the purpose of Sub-rule (1), the amount for which goods are sold by a dealer shall,
(a) in relation to a works contract in which the transfer of property takes place in the form of goods, be the whole amount payable to the dealer for carrying out such contract;
(b) in relation to a works contract in which the transfer of property takes place not as goods but in some other form in which the dealer transfers all the goods involved in the execution of such contract, be the whole amount payable to the dealer for carrying out such contract less the labour charges not incurred in relation to the goods involved in the execution of the works contract, and other charges and costs such as-
(i) charges for planning and designing and the architect’s fee;
(ii) charges for obtaining on hire or otherwise, machinery and tools used for the execution of the works contract or, where the machinery is owned by the contractor, the interest paid on any loan taken for the purchase of the machinery and the depreciation in respect of such machinery.
(iii) cost of consumables used;
(iv) cost of establishment and overhead charges of the dealer to the extent it is relatable to the supply of labour and services;
(v) profit earned by the dealer to the extent it is relatable to supply of labour and services;
(c) in relation to a works contract in which the transfer of property takes place not as goods but in some other form in which the goods supplied by the awarder are partly involved and the value of the goods so supplied is not included in the contract amount, be the whole amount payable to the dealer for carrying out such contract less labour charges as explained in (b) above.
(d) in relation to a works contract in which the transfer of property takes place not as goods but in some other form in which the goods supplied by the awarder are partly involved and the value of the goods so supplied is included in the contract amount and the value of the goods supplied is deducted from the payments made by the awarder to the contractor, be the whole amount payable to the dealer for carrying out such contract less labour charges as explained in (b) above:

Provided that when a works contract extends to more than one year for its completion, the turnover for each year shall be:-
(i) when a system of progressive billing is stipulated for the payment of the contract amount for that much of works completed in a year; then the turnover involved in the amount received or receivable on such bills for the year; and
(ii) In other cases the turnover relating to the portion of work completed during that year; and
(iii) In the case of on-going contract on the date of commencement of these rules, the turnover for the purpose of these rules shall be the turnover relating to the work, which remains to be completed, which shall be computed in accordance with these rules.
(3) Where the actual turnover in relation to a works contract, in which the transfer of goods takes place not in the form of goods but in some other form, is not ascertainable from the books of accounts of the dealer or where the dealer has not maintained any accounts, the total turnover in respect of such works contract shall be computed after deducting labour and other charges as given in the table below from the total amount of contract:

The Table
Sl. No. Type of works contract Labour or other charges as a Percentage of the value of the works contract
(1) (2) (3)
1 Electrical Contracts 20
2 All structural contracts 30
3 Sanitary contracts 20
4 Tyre re-treading contract 50
5 Dyeing and Textile Printing contracts 50
6 Photography and Printing contracts 30
7 Sculptural contracts or contracts relating to Arts 70
8 Refrigeration, air conditioning or other machinery, rolling shutters, cranes installation contracts 15
9 Installation of plant and machinery 15
10 Laying of pipes 20
11 Installation of elevators (lifts) and escalators 15
12 Installation of air conditioners and air coolers 10
13 Fixing of marble slabs, polished granite stones and tiles (other than mosaic tiles). 25
14 All other contracts 25

(4) Notwithstanding anything contained in sub-rule (1), where the turnover arrived at after deducting the amounts mentioned in clauses (b) and (c) of sub-rule (1) falls below the cost of goods transferred in the execution of the works contract, an amount equal to the cost of the goods transferred in the execution of the works contract together with the profit, if any, shall be the turnover in respect of such works contract.

Explanation: - For the purposes of this sub-rule, cost of goods means the price of the goods together with all expenses incurred by the contractor in bringing the goods to the work site.

(5) The amount payable for a contract which does not involve any transfer of goods, whether as goods or in some other form, shall not be deemed to be turnover for the purpose of this rule

10. Determination of taxable turnover: - (1) In determining the taxable turnover, the amounts specified in the following clauses shall, subject to the conditions specified therein, be deducted from the total turnover of the dealer: -
(a) all amounts allowed as cash discount, provided that such discount is allowed in accordance with the regular practice in the trade and also that the accounts show that the purchaser has paid only the sum originally charged less the discount;
(b) all amounts allowed to purchasers in respect of goods returned by them to the dealer within a period of ninety days from the date of delivery of the goods, where the goods are taxable on the amount for which they have been sold, provided that the accounts show the date on which the goods were returned and the date on which and the amount for which refund was made or credit was allowed to the purchaser and the deduction is claimed during the year in which the sale was effected;
(c) all amounts received from the sellers in respect of goods returned to them by the dealer, where the goods are taxable under sub-section (2) of section 6, provided that the goods are returned within a period of ninety days from the date of delivery of the goods by the seller and the accounts show the date on which the goods were returned, the date on which the refund was made and the amount of such refund and the deduction is claimed during the year in which the sale was effected;
(d) all amounts for which goods specified in the first Schedule to the Act are sold;
(e) all amounts falling under the following heads, when specified and charged for by the dealer separately, without including them in the price of goods sold:
(i) freight
(ii) charges for delivery
(iii) cost of installation
(f) all amounts realised by a dealer by the sale of his business as a whole;
(g) all amounts for which goods are sold or purchased where such sale or purchase takes place in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India or in the course of inter State trade or commerce;
(h) (i) the turnover of sales or purchases made by a dealer through his agent in respect of which tax has been paid by the agent.
(ii) the turnover of sales or purchases made by an agent for and on behalf of any principal in respect of which tax has been paid by the principal
(i) in the case of works contract, the turnover in relation to any amount paid to sub-contractors as consideration for execution of works contract:
Provided that no such deduction shall be allowed unless the dealer claiming the deduction produces proof that the sub-contractor is a registered dealer liable to pay tax under the Act and that the turnover in relation to such amount is included in the return filed by such sub-contractor and that tax thereon has been paid by him
(j) all amounts collected by way of tax under the Act, if shown separately in the bills.

11. Filing of option by dealers for payment of compounded tax.
(1) Every application for exercising option for payment of compounded tax under section 8 shall be in Form No. 1 D and shall be filed before the assessing authority on or before the 30th day of April every year:

Provided that in case of dealers who become liable to registration under the Act during the course of the year, such option shall be filed along with the application for registration.

(2)(i) If the assessing authority is satisfied that the application filed is in order, it shall grant permission in Form No.4 D
(ii) If the assessing authority is satisfied that the application filed is not in order, it shall reject the application, for reasons to be recorded in writing and after giving the dealer an opportunity of being heard.

(3) Where a works contractor who has opted for payment of compounded tax under section 8 becomes ineligible for payment of tax under that section, he shall inform the assessing authority within ten days of his becoming so ineligible. Thereupon he shall be liable for payment of tax in accordance with the provisions of sub-sections (1) and (2) of section 6 in respect all contracts entered into subsequent to the date from which he has become so ineligible.

12. Determination of Input tax credit in respect of opening stock-- (1)Goods held as opening stock on the date of coming into force of the Act, in respect of which input tax credit is claimed by a dealer under sub-section (13) of section 11 shall be -
(a) those which were taxable under the Kerala General Sales Tax Act,1963 (15 of 1963);
(b) those purchased within one year preceding such date;
(c) in the case of goods, other than those taxable at the point of first or last purchase as applicable under the Kerala General Sales Tax Act, 1963, supported by bills issued by dealers registered under the Kerala General Sales Tax Act,1963 (15 of 1963);
(d) in the case of goods taxable under the said Act at the point of purchase, supported by sale bill issued by the seller or purchase bill or bought note, as the case may be, issued by the dealer claiming such input tax credit;
(e) those which were taxable under the Kerala General Sales Tax Act, 1963 (15 of 1963) and are also taxable under the Act; and
(d) physically available with the dealer on such date.

(2) Any dealer claiming input tax credit in respect of such goods shall submit to the Assessing Authority, an application in Form 25A within thirty days from the date of commencement of the Act, along with the opening stock inventory as on the date of coming into force of the Act, separately for goods falling under different Schedules to the Kerala General Sales Tax Act, 1963 (15 of 1963) -
(i) purchased within the State from dealers registered under the said Act-(a) where tax collection is shown separately (b) where such tax collection is not shown separately, and
(ii) purchased from outside the State and those in respect of which tax under the Kerala General Sales Tax Act, 1963(15 of 1963) has not been suffered. Where a particular purchase bill is lost the dealer shall obtain from the seller a duplicate bill showing the particulars included in the original bill, with a certificate of the seller to the effect that the duplicate bill is issued in the context of the loss of the original bill and furnish details there of in the statement furnished in Form 25A.

Along with the application in form 25A the dealer shall also submit a statement showing separately the opening stock value of goods as on 01..04.2004 and 01.04.2003 in respect of goods taxable at the hands of the dealer and those exempted at his hands.

The stock inventory and the statement of purchase bills referred to in this sub-rule shall be certified by a Chartered Accountant or a Cost Accountant, where the dealer submitting the statement was covered by the provisions of section 26A of the Kerala General Sales Tax Act 1963 (15 of 1963) during the year 2004-05. The time limit may be extended by the assessing authority by fifteen days in deserving cases.
(3) Where in respect of goods taxable at the point of sale the selling dealer has not shown tax collection separately in the bills or, in respect of goods taxable at the point of first purchase in the state, where the dealer claiming input tax credit is not the first purchaser in the state, the amount of tax paid by the dealer to the sellers in respect of which input tax credit is allowable shall, subject to the provisions of sub-rule (5), be determined by applying the following formula:
a) 9 PR In the case of goods to be of special importance in inter state
10(100+R) trade or commerce (Declared Goods) under section 14 of the
CST Act 1956
.
b) 85 PR
100(100+R) In the case of other goods.

where P is the opening stock value of the goods and R is the rate of tax applicable to the goods, including additional sales tax, if any, under the Kerala General Sales Tax Act 1963, (15 of ‘63 ) (in the case of goods falling under the Fifth Schedule to the Kerala General Sales Tax Act, 1963, (15 of `63 ), R shall be the rate of tax, including additional sales tax, if any, applicable on the first sale of the goods in the state)
(4) In the case of goods which suffered tax at the point of first purchase or last purchase under the Kerala General Sales Tax Act, 1963 (15 of 1963) at the hands of the dealer claiming input tax credit, the tax so suffered on such goods held as opening stock on the date of coming into force of the Act, for the purpose of calculation of the input tax credit shall, subject to the provisions of sub-rule (5), be determined by applying the rate of tax, including Additional Sales Tax, if any, on the purchase value of the goods calculated at the average price of such goods in the month preceding the date of coming into force of the Act.
(5) In the case of goods in respect of which tax had been paid by the dealer claiming input tax credit, at the point of first purchase or at the point of last purchase under the KGST Act, the input tax credit in respect of such goods under sub-section (13) of section11 be claimed by the dealer in three equal monthly instalments commencing from the return for the month of April 2005 onwards.
(6) Where the dealer claiming input tax credit has submitted the statements as required by sub-rule (2), the dealer shall claim input tax credit in three equal monthly instalments commencing from the return for the month of May 2005 onwards.
(7) Where a dealer who had opted for payment of tax under sub-section (5) of section 6 changes over to the payment of tax under sub-section (1) of section 6, he shall submit an application in Form No.25A along with a stock inventory on the date of change over, duly certified by a Chartered Accountant or a cost accountant, where the dealer is covered by the provisions of section 42, and a statement of the purchase bills issued by registered dealers paying tax under sub-section (1) of section 6, within fifteen days from the date of change over.

(8) Where the dealer referred to in sub-rule (7) has submitted the statements as required by the said sub-rule, the assessing authority shall verify the claim and, where it is satisfied that the claim is in order, permit the dealer to claim input tax credit in respect of such goods held as opening stock in three equal monthly instalments.

13. Determination of input tax credit in respect of capital goods: -
(1) Any dealer claiming input tax credit under sub-section (2) of section 11 in respect of capital goods shall apply to the assessing authority in Form 25 within thirty days from the date specified in the said sub-section along with copies of the tax invoice issued by registered dealers.

(2) Where the assessing authority, on receipt of such application, is satisfied that the application is in order and the claim of input tax credit is admissible, it shall inform the dealer in Form 25 B accordingly, within thirty days from the date of receipt of such application.

(3) Where the assessing authority, is not satisfied that the particulars contained in the application are correct and complete or that the claim of input tax credit is other wise in admissible, it shall reject the application, for reasons to be recorded in writing, after affording the dealer an opportunity of being heard.
(4) Deduction of input tax under sub-section (2) of section 11 shall be subject to the following conditions:-

(a) The deduction shall be allowed in thirty-six equal monthly instalments over a period of three years from the date specified in sub-section (2) of section 11.
(b) No deduction of input tax shall be allowed where the use of capital goods relates wholly to the manufacture of exempted goods and/or goods falling under the fourth schedule.
(c) Where the capital goods are used from the commencement of commercial production, for manufacturing taxable and exempted or non taxable goods simultaneously, the monthly instalments fixed under clause (a) shall be apportioned between the taxable and exempted or non taxable goods manufactured, on the basis of the ratio of taxable and exempted turnover during the period in which the input tax credit is claimed. The portion of the input tax allocable to taxable goods shall be allowed and that allocable to exempted goods disallowed and deducted from the input tax credit eligibility of the dealer.
(d) where the capital goods used for the manufacture of exempted or non-taxable goods, is subsequently used for manufacture of taxable goods wholly or partly, the input tax credit allowable for the capital goods shall be calculated as follows:

(i) where the capital goods are used subsequently for manufacturing taxable goods only, the input tax credit for the months in which the capital goods are used for manufacturing exempted goods shall be disallowed and the input tax credit for the months during which the capital goods are used for the manufacture of taxable goods shall be allowed.
(ii) where the capital goods are used subsequently for manufacturing exempted or non taxable goods and taxable goods simultaneously, the input tax credit for the period during which such capital goods are used for the manufacture of exempted or non taxable goods shall be disallowed and the input tax credit for the months during which the capital goods are used for the manufacture of taxable goods and exempted or non taxable goods shall be determined in the manner prescribed under clause (c).
(e) Where the capital goods are used partly for the manufacture of goods falling under the first schedule and/or the fourth schedule and partly for the manufacture of taxable goods, the input tax credit calculated under clause(a) above shall be apportioned among the goods falling under the first schedule, fourth schedule and other goods on the basis of the ratio of the turnover of goods coming under the first schedule and fourth schedule and that of other goods, and the input tax credit allowed or as the case may be, disallowed in the manner specified in clause (c) above.

(f) The dealer shall claim the deduction in the monthly return.

(5) (a) Where there is a change in use of the capital goods, on or after the claim for input tax credit has been allowed, and the dealer is no longer eligible for such input tax credit, the dealer shall inform the assessing authority within ten days of such change in use.

(b) The assessing authority shall inform the dealer that he is no longer eligible for the input tax credit for the capital goods with effect from the end of the month preceding the month in which such change of use has occurred.

(6) Where the capital goods are transferred to an industrial units manufacturing taxable goods in the state by way of sale of business as a whole, input tax credit to the extent of that remaining un-availed by the transferor shall, subject to the other provisions of this rule, be allowed to the transferee with effect from the date from which the capital goods are put to use by the transferee or the date of sale of goods manufactured using such capital goods, which ever is later.

(7) Where the capital goods are disposed of otherwise than by way of sale within a period of three years as specified in sub-section (2) of section 11, the dealer shall not be eligible for input tax credit in relation to such capital goods subsequent to such disposal.

14. Procedure for claiming special rebate:-- (1) Any dealer who pays tax under sub-section (2) of section 6 or entry tax under section 3 of the Kerala Tax on Entry of Good into Local Areas Act, 1994(15 of 1994) in respect of any goods intended for sale or for use in manufacture of taxable goods in the State shall claim it in the return for the month in which the tax specified under clause (a) or (b), as the case may be, of the said section is paid.

(2) Where the special rebate allowed under sub-rule (1) is not fully set off during the month in which it is allowed, the rebate so remaining unadjusted shall be carried forward to the next return period for the purpose of allowing special rebate in the succeeding return period.
15. Determination of reverse tax. - (1) In the case of purchase of goods for which input tax credit has been availed of and such goods remain unsold at the closure of business or are used for any purpose, which attracts reverse tax under sub-section(7) of section 11, the entire input tax for such purchase shall be the reverse tax, if separately ascertainable.

(2) Where any portion of goods in respect of which input tax credit has been availed of and such goods remain unsold at the closure of business or are used for any purpose for which reverse tax is leviable and the quantum of reverse tax is not ascertainable then the quantum of reverse tax in relation to such portion of goods shall be calculated by applying the rate of tax applicable to such goods on the purchase value of the goods as disclosed from the immediate previous purchase bill in respect of such goods.

(3) Where a dealer who has availed of input tax credit in respect of any goods which remain unsold at the closure of his business and the business is transferred as a whole to any dealer other than a dealer paying tax under sub-section (1) of section 6, the entire input tax credit availed of in respect of the goods so transferred shall be the reverse tax.

(4) Where a dealer is liable for the reverse tax under sub rules (1) or sub-rule (2) or sub-rule (3) for any return period, the sum of the reverse tax calculated under the said sub-rules shall be the reverse tax for that return period.

16. Net tax payable. -

(1) The net tax payable by a registered dealer for a return period shall be (a) the amount arrived at after deducting the input tax under section 11 and special rebate under section 12 from the sum of the output tax, tax on the purchases under sub-section (2) of section 6 and reverse tax under sub-section (7) of section 11 for that return period:

Net tax payable = (Output tax + Tax on purchase + Reverse Tax) - (input tax credit +special rebate)
OR (b) Presumptive tax under sub-section (5) of section 6 OR (c) Compounded Tax under section 8.

(2) Where for any return period the input tax is more than the output tax, the difference shall be carried forward to the succeeding return period after making adjustments as provided under sub- section (7) of section 11.

(3) For the purpose of this rule, input tax for a return period shall be the sum of input tax for that return period and the input tax carried forward from the previous return period or periods.

(4) A dealer paying presumptive tax under sub- section (5) of section 6 or compounded tax under section 8 shall pay tax as provided under rule 24.

CHAPTER - IV

REGISTRATION AND PERMIT

17. Application for registration: - (1) Every dealer required to be registered under section 15 as on the date of commencement of the Act, other than a dealer registered under the Kerala General Sales Tax Act, 1963(15 of 1963), shall submit to the registering authority of the area in which his principal place of business is situated, an application for registration within thirty days from the date on which these rules come into force.

(2) Every dealer registered under the provisions of the Kerala General Sales Tax Act, 1963 (15 of 1963) shall submit his application within twenty days from the date on which these rules come into force.

(3) Every dealer who becomes liable to get registered after the commencement of the Act shall submit to the registering authority of the area in which his principal place of business is situated an application for registration within thirty days of his total turnover reaching the limit specified in section15.

(4) Every casual trader referred to in clause (xi) of Section 2 shall within twenty four hours of his arrival in the jurisdiction of the Registering authority concerned, intimate to such Registering authority, his name, address and residence in the State, if he is a resident of the State or his name and address in the State as well as his address outside the State, if he is a non-resident, the nature of the goods in which he intends to deal and the period within which he intends to leave the jurisdiction of the said authority. He shall also submit to the registering authority concerned an application in FormNo. 1 B for registration within five days of his arrival or prior to twenty four hours from the last working day preceding the date on which he intends to leave the jurisdiction of the said authority, whichever is earlier,
(5) Any dealer who is not liable to get registered under sub-rule (1) may, at his option, apply for registration under Section 15 to the registering authority of the area in which his principal place of business is situated.
(6) Every non resident dealer shall submit the application for registration to the Commissioner or any Officer authorized by him in this behalf.
(7) Every application for registration under sub-rules (1) to (6) shall be made in Form No 1, in the case of dealers other than presumptive tax payers and in Form No. 1A, in the case of dealers opting payment of presumptive tax under section 6(5) and shall specify the full address of the place or places of business, the godown or godowns and other place or places in which the goods relating to the business are stored and the details of goods to be bought or sold. Such applications shall be duly attested and signed and verified in the manner provided in the said form, in the case of a business carried on by--
(a) an individual, by the proprietor or by a person having due authority to act on behalf of such proprietor;
(b) a firm, by a partner thereof;
(c) a joint family, by the Kartha or an adult member thereof;
(d) a company or an association or body of person whether incorporated or not or an artificial juridical person, by a Director, Manager, Secretary or the Principal Officer, thereof; or by a person duly authorised to act on its behalf.
(8) Every application for registration shall be accompanied-
(i) by an attested copy of the documents to prove the identity of the applicant such as Passport or Electoral Identity Card.(where the applicant is having a PAN card, he shall invariably furnish a copy of the same.) ;
(ii) by a declaration stating the name of the person who shall be deemed to be the manager of such dealer’s business and all returns signed and statements so made by such manager shall be binding on the dealer.( Such declaration may be revised from time to time.)
(iii) by a chalan receipt from a Government Treasury for--
(a) the fee specified in sub- section (1) of S.16 (in the case of a dealer other than a dealer registered under the Kerala General Sales Tax Act.(15 of 1963); or
(b) the fee specified in sub-section (7) of section 16(in the case of a dealer registered under the Kerala General Sales Tax Act.(15 of 1963);

(iv)in the case of a partnership firm, by a copy of the partnership deed and a declaration in Form No 2, signed by all the partners stating the names and addresses of all the partners and their respective shares in the business ;
(v)in the case of a company or association of persons or body of individuals, by a copy of the Memorandum of Association and Articles of Association.; and
(vi)in the case of an individual or a partnership firm, by two passport size photographs of such individual or of all the partners as the case may be
(vii) in the case of a company or association of persons or body of individuals or a partnership firm, by a statement showing the details of authorized signatories in Form No. 2A
(viii) In the case of dealer holding a PAN Card, a copy of the latest income tax return.
(ix) by proof of payment of a fee of five hundred rupees for Electronic Identity Card and two hundred and fifty rupees for each add-on cards in such manner as Government may direct from time to time (in the case of a dealer who has applied for Electronic Identity Card under section 16 ); Dealer to whom Electronic Identity Card had already been issued under the Kerala General Sales Tax Act shall not be required to make any payment under these rules. Those dealers who have made the payment and awaiting issue of the card furnish the details of payments.
(9) If a partner retires without the partnership being dissolved thereby, he shall send to the registering authority a declaration in Form No 3, within 30 days of his retirement, along with a copy of the deed of retirement.
(10) Every dealer, including a joint family entering into or forming a partnership in regard to his business shall, within 30 days of such event happening, send to the registering authority of the area in which his principal place of business is situated, fresh application for registration in Form No 1, as provided in sub-rule (7) along with copies of the partnership deed and declaration in Form No 2, as provided in sub-rule (8).
(11) If any Partnership Firm is dissolved and the business is taken over by an individual, he shall apply for fresh registration as provided for in sub-rule (7).

(12) The person signing and verifying an application for registrations shall specify the capacity in which he does so and shall give particulars of the authority vested in him for signing and verifying the application.
(13) In the case of business carried on by an individual or joint family or other association or body of persons, whether incorporated or not, the name and permanent residential address of such individual, each of the members of the family or, as the case may be, members of the managing committee of the association and of persons having any interest in the business etc., shall be stated in the application for registration.
(14) The registering authority receiving the application, after making such enquiries as it may consider necessary and after satisfying itself that the prescribed fee has been paid, that the application is in order, that the particulars furnished therein are correct and complete, and that the security, if any, demanded has been paid, register the dealer and grant him a certificate of registration in Form No 4, in the case of a dealer, other than a presumptive tax payer or casual trader, in Form No. 4A, in the case of a dealer who has opted for payment of presumptive tax under section 6(5), and in Form No. 4 B, in the case of a casual trader. In the case of dealers registered under the provisions of the Kerala General Sales Tax Act, 1963(15 of 1963), the certificate of registration shall be issued within thirty days from the date of coming into force of these rules. The registration granted under the Kerala General Sales Tax Act 1963(15 of 1963), which was in force on the day preceding the date of commencement of the Act, shall remain in force until registration is granted under this sub-rule. In the case of a dealer who applies for registration as a dealer under sub-section (5) of section 6, the certificate of registration shall be issued within seven days from the date of filing of the application where the dealer has complied with the requirements of sub-rule (7).

(15) Where a dealer has more than one place of business (other than a place used merely for the storage of goods) the registration certificate shall cover all such places of business. The registering authority, on application by the dealer and on payment of the fee specified in sub-section (4) of section 16 for each copy, shall issue copies of the registration certificate to the dealer for exhibition at each of his place of business.

(16) If the registering authority finds that, the application is not in order or that the particulars contained in the application are incorrect and incomplete or that the security demanded has not been paid, it shall refuse the application after affording the applicant an opportunity of being heard. However, no application shall be refused merely on technical grounds without giving the applicant an opportunity to correct mistakes.

(17) Every registered dealer shall file an application for renewal of the registration in Form No.5 in the case of a dealer other than presumptive tax payer and in Form No. 5A, in the case of a dealer paying presumptive tax under section 6(5), not later than 30th day of April of the year for which the renewal of registration is sought. Along with the application he shall also file a Chelan receipt from a Government Treasury for the fee specified in sub-section (7) of section 16.

(18) No registration shall be cancelled under sub-section (9) or sub-section (10) of section 16 without giving an opportunity to the dealer of being heard. For the purposes of sub-section (1) of section 10, the following shall constitute good and sufficient reasons, namely:
(i) Where the registration has been obtained in the name of a fictitious persons or where the place of business shown in the application is non-existent or the owner of such places has not given his consent in writing to the applicant for running the business; or
(ii) Where the applicant has obtained the registration by the exercise of fraud or misrepresentation of facts; or
(iii) Where the dealer is found to have claimed input tax credit or refund of input tax on the strength of any forged or bogus document; or
(iv) Where the dealer has not been paying the tax collected by him to Government as required by the Act or these rules consecutively for a period of three returns periods and /or has failed to furnish any security or addl. Security demanded by the registering authority; or.
(v) Where the dealer is found to have obstructed the officers conducting audit visit or inspection or search at his business place or residence in accordance with the provisions of the Act or these rules; or
(vi) Where the registration is continued without any business being transacted for a continuous period of two years, or
(vii) Where there is any other act or omission of a like nature on the part of the dealer.

(19) Where a certificate of registration is cancelled, the registering authority shall issue to the dealer concerned a notice in Form No. 5 B and shall publish the details in at least two leading dailies in the state and also in the website of the Commercial Taxes Department.

(20) The cancellation of registration shall be effective only from the date on which a copy of the order is served on the dealer or from the date of publication of such cancellation as specified under sub-rule (19), which ever is later.
(21) Where a certificate of registration is cancelled, the said cancellation shall not affect the liability of the dealer to pay the tax, including any penalty or other amounts due for any period prior to the date of cancellation whether such tax including any penalty or other amounts is assessed before the date of cancellation but remains unpaid, or is assessed thereafter.

(22) Where a certificate of registration issued is lost or destroyed, a duplicate of the certificate shall be issued by the registering authority on application and on payment of a fee of one hundred rupees
(23) Every registration certificate granted under sub-rule (14) shall be deemed to have been granted personally to the dealer specified therein. No registration certificate issued or renewed shall be sold or transferred.

(24) Where a dealer transfers his business to another dealer, the transferee shall within 30 days of such transfer apply for and obtain fresh certificate of registration, with copy for each of the places of business, if any, on payment of the fees specified in sub-sections (1) and (4) of section 16 as applicable.

(25) Every registered dealer shall keep the certificate of registration or the copy of it, as the case may be, in each of his places of business and produce the same on demand by any officer empowered under section 43. When a registered dealer changes any place of business, he shall intimate the fact to the registering authority within seven days of such change and get his certificate of registration amended accordingly.

(26) A certificate of registration granted to a dealer under sub-section (2) of section 15 may, either on the application of the dealer to whom it has been granted, or where no such application has been made, after due notice to the dealer, be amended by the authority granting it if he is satisfied that by reason of the registered dealer having changed the name, place or nature of his business or the class of goods in which he carries on the business or for any other reason the certificate of registration granted to him requires to be amended.

(27) Every registered dealer who discontinues or transfers his business or whose certificate of registration is otherwise cancelled shall, forthwith, surrender to the registering authority the certificate of registration and the copies thereof, if any, granted to him along with any unused statutory forms issued to him.

(28) No registered dealer shall keep his goods in any place or godown not mentioned in the registration certificate.

(29) Any dealer seeking permission under sub-section (13) of section 16 shall make an application to the assessing authority in form No.1 C. The application shall be accompanied by a chelan receipt from a Government Treasury for the fee specified in sub-section (13) of section 16 and consent from the owner of the premises where the exhibition, mela or other schemes are conducted. The assessing authority shall, if he is satisfied that the application is genuine and that the required fee has been remitted, issue the permission in Form No. 4 C

(30) Any dealer who has opted for payment of presumptive tax under sub-section (5) of Section 6 may, opt to come out of the system of payment of presumptive tax by filing an application in Form No.1
(31)Where a dealer who has opted for payment of presumptive tax under sub-section (5) of section 6 has become ineligible for the payment of tax under that sub-section, such dealer shall intimate the fact to the registering authority and the assessing authority within ten days from the date on which he has so become ineligible and he shall be liable for payment of tax in accordance with the provisions of sub-sections (1) and (2) of that section from the beginning of the quarter subsequent to the quarter in which his turnover has crossed the said limit.

18. Use of Electronic Identity Card:- (1) Every dealer to whom an Electronic Identity Card has been issued shall keep it in safe custody and take appropriate steps to ensure that it is used only by persons duly authorized by him.
(2) Where an Electronic Identity Card issued to a dealer is lost, the dealer shall, as soon as practicable, inform the registering authority and the assessing authority concerned, either through e-mail or in writing or in person, about such loss.
(3) The registering authority or the assessing authority, as the case may be, receiving the information shall verify the identity of the informant and, on being satisfied that the information of loss is furnished by the dealer or his duly authorised representative, take immediate steps to lock the Electronic Identity Card. However, the dealer shall be responsible for any misuse of the card from the time of loss to the time of locking of the card.
(4) The dealer referred to in sub-rule (2) may file an application for the issue of a duplicate identity card in Form No. 25 C before the registering authority.
(5) The registering authority shall after conducting such enquiry as he may deem fit, and on being satisfied that the request is genuine, issue a duplicate identity card.

19. Security to be furnished by certain dealers :-

(1) Where the registering authority decides to demand security or additional security under section 17, it may direct the dealer, in writing, to furnish, within a period, which shall not be less than fifteen days, as may be fixed by the said authority, security for such amount as may be specified in the notice in Form No. 6 D. In making the estimate of turnover for the purpose of fixing the quantum of security the said authority shall take into account the taxable turnover of the dealer, if any, during the preceding year, the trend of business at the time the estimate is made, the nature of the goods dealt in by him, and such other factors as may, in the opinion of the said authority, assist it in making a proper estimate. No security shall, however, be demanded from a dealer who applies for registration as a dealer under sub-section(5) of section 6.

(2) The security or additional security may be furnished by the dealer in any of the following ways, namely: -
(a) by depositing as security in the Government Treasury the amount fixed by the said authority and pledging the pass book to and depositing it with the said authority; or
(b) by depositing with the said authority Government securities for the amount fixed by the said authority; or
(c) by depositing security amount in the Post Office Savings Bank and pledging the pass book to and depositing it with the said authority; or
(d) executing a security bond for such amount in Form No.6 with two sureties, solvent enough for the amount assured and acceptable to the said authority; or
(e)by a bond prescribed under rule 85 for the amount fixed by the said authority in Form No. 6A, duly registered, along with title, possession and valuation certificates obtained from the Tahsildar concerned and the value of property shall not be lower than the amount, shown in the bond, or
(f) by means of a bank guarantee in form No.6 C, from a nationalised or scheduled bank, or of any bank authorised under Rule 25 or of any branch thereof located in the State.

(3) The security or additional security furnished shall be maintained in full so long as the registration certificate continues to be in force and may, in the event of default of payment of any tax or any other amount due under the Act be liable to adjustment towards such tax or other amount due, after due intimation to the dealer.

(4) Where a person who stood as surety by signing the bond in Form 6 furnished under sub-rule (2) desires to withdraw from the bond, he shall duly serve on the dealer who had executed the bond and to the registering authority, of his desire to do so. Thereupon the dealer shall within sixty days furnish fresh security in any of the manner specified under sub-rule (2) for the amount of the bond and the withdrawal shall be operative from the date on which such fresh security is furnished.

(6) In the case of death or insolvency of any of the sureties furnished by a dealer in the form of a surety bond under clause (d) of sub- rule (2), the dealer shall within fifteen days of the occurrence of any of the aforesaid events, inform the registering authority and shall within sixty days of such occurrence furnish a fresh surety bond or furnish other security as prescribed under sub- rule (2).

20. Suspension of Registration:- (1) The Deputy Commissioner shall, before passing an order under Section 18, issue a notice to the dealer concerned stating therein the reasons for such suspension and afford him an opportunity of being heard. The Deputy Commissioner shall communicate such order to the dealer.

(2) Any registered dealer whose registration is suspended shall be considered to be a dealer having no registration from the date of communication of the order till the expiry of the period of suspension.

(3) The period of suspension under sub section (2) of section 18 shall be for a period as specified below:
Amount of tax evaded for an year Period of suspension

Exceeding One lakh but less than Three lakhs Six Months
Exceeding Three lakhs but less than Ten lakhs Nine Months
Exceeding ten lakhs One year

(4) Where the registration certificate of a dealer is suspended, the matter shall be published in not less than two daily newspapers having wide circulation in the state and shall also be put in the Department Website. The suspension shall take effect from the date of publication.

21. Issue of permit:- (1) Every application for a permit under sub-section (1) of section 19 shall be in Form No. 7, and shall be submitted to the Registering Authority before transacting the business at places other than his registered place of business or employing a Travelling Sales man or Representative to transact business.

(2) Every such application shall specify the name and address of the registered dealer, the number and date of his registration certificate, and the numbers of permits required.

(3) Every application for the grant or renewal of a permit shall be accompanied by the receipt from a Government Treasury, crossed cheque, or crossed demand draft in favour of the registering authority for the fee specified under section 19.

(4) The registering authority receiving the application may, after satisfying itself that the prescribed fee has been paid and that the application is otherwise in order, issue a permit in Form No. 7 A within three days from the date of application.

(5) Every permit granted under this rule shall expire on the thirty first day of March of the year in respect of which it is granted and may be renewed for periods not exceeding one year at a time on receipt of an application from the registered dealer in accordance with the provision contained in this rule.

(6) The authorization referred to in subsection (1) of section 19 shall be in Form No. 7 A
(7) Every dealer to whom the permit is issued or his traveling salesman/representative, duly authorized by him, shall carry the permit with him and shall produce it on demand by any officer not below the rank of an Assessing authority.

(8). The stock book specified under sub-section(3) of section 19, the purchase invoice and/or sale invoice, shall, before making any entries therein, be duly authenticated by the assessing authority by affixing its seal thereon. The stock book shall be maintained continuously for the whole period covered by the permit.

(9) Where a permit granted or renewed under this rule is lost or is destroyed, duplicate of the permit shall be issued by the registering authority on application and on payment of a fee of fifty rupees.

CHAPTER - V

SUBMISSION OF RETURNS, ASSESSMENT AND
COLLECTION OF TAX AND PENALTY

22. Submission of Monthly and Annual returns.- (1) Every dealer registered under the Act and every dealer liable to get registered under the Act other than a dealer paying presumptive tax or compounded tax or a dealer who deals exclusively in goods included in the first schedule to the Act, and every dealer who is required to do so by the assessing authority shall, for every return period, submit to the concerned assessing authority, a return in Form No. 10, showing the details of total turnover, turnover on which exemption is claimed, taxable turnover, output tax due, tax collected, input tax credit availed of, tax due including reverse tax, if any, and the tax paid separately for that return period on the following dates:

(a) Every dealer whose annual tax liability ] Before the tenth day of the
for the preceding year was ten lakh rupees ]month following the return period
or more
(b) Any other dealer ] on or before the fifteenth day of the
month following the return period.

(2) Every dealer registered under the Act and every dealer liable to get registered under the Act and every dealer who is required to do so by the assessing authority, irrespective of the quantum of his total turnover, shall, on or before the 30th day of April every year, submit to the assessing authority of the area in which his principal place of business is situated, a return in Form No. 10 in triplicate showing the details of total turnover, turnover on which exemption is claimed and taxable turnover, input tax credit availed of, output tax, tax due, including reverse tax, if any, and the tax paid separately for the preceding year. Where the details furnished in the annual return vary from those furnished in the monthly returns, the dealer shall, along with the return, file a reconciliation statement.

(3) Along with the return in Form No. 10 the following records also shall be submitted:
(i) Statement regarding purchase invoices,
(ii) Statement regarding purchase returns and/or sales returns,
(iii) Statement regarding goods sent on branch transfer,
(iv) Photocopies of the Delivery Note in Form No. 15 used during the period for which the return relates. Originals of the Delivery Note shall be submitted along with the annual return.
(v) Copy of the stock inventory as on 31st March, in the case of annual return.
(vi) A statement regarding the declarations in Form No. 41obtained from any institution referred to in Sl.No.56 A of the third schedule, along with the photocopies of such declaration.

(4) Every dealer who discontinues his business during the course of a year shall submit to the concerned assessing authority a return for the period up to and inclusive of the date of discontinuance of the business within fifteen days from the date of such discontinuance.

(5) Any dealer who receives a notice under sub-section (4) of section 22 rejecting the return shall, within fifteen days from the date of receipt of such notice file a fresh return rectifying the defects as pointed out by the assessing authority in the notice.

(6) Every dealer liable to submit a return in Form No.10 under sub rules (1) or (4) and any dealer filing a fresh return under sub-rule (5) shall submit along with the return a receipt from a Government Treasury or any designated Bank or self attested copy of the receipt from the government treasury or any designated bank or crossed cheque or crossed demand draft in favour of the assessing authority for the full amount of tax or taxes due for the return period on the basis of the return and, in the case of a fresh return under sub-rule (5), in addition to the tax so payable, the interest payable under sub-section (5) of Section 31, failing which the assessing authority shall serve upon the dealer a demand notice in Form No. 12 and the dealer shall pay the sum demanded within the time and in the manner specified therein.

(7) If the return is submitted without a treasury receipt, crossed cheque or crossed demand draft for the full amount of the tax payable in favour of the assessing authority, the assessing authority shall serve upon the dealer a notice in Form No. 10 G and the dealer shall pay the sum demanded along with interest, if any, within the time and in the manner specified therein.

(8) where on account of any sale return or purchase return made within the time allowed therefore under these rules a revision of the turnover has become necessary, the dealer may file a revised return on or before the tenth day of the month succeeding that in which the sales return or purchase return, as the case may be, is made along with a statement showing the particulars of the sales return or purchase return, as the case may be.

23. Submission of return by casual traders: - (1) Every casual trader shall submit to the assessing authority concerned on or before the tenth of every month a return in Form No. 10 E showing total turnover, turnover on which exemption is claimed, taxable turnover, input tax credit availed of, output tax and the tax due including reverse tax and tax paid separately for goods for the preceding month. Along with the return he shall submit a receipt from a Government Treasury or self attested copy of the receipt from the government treasury or crossed demand draft in favour of the assessing authority for the full amount of the tax or taxes payable on the taxable turnover for the month to which the return relates. The casual trader may, if he so desires, pay to the assessing authority in cash the tax due, and obtain a receipt therefore.

(2) (i) Where a casual trader stops his occasional transactions during the course of a month he shall submit to the assessing authority concerned a return in Form No. 10 E showing the total turnover and taxable turnover up to the stoppage of such transaction within the jurisdiction of the said authority within twenty four hours of the completion of the last transaction. Along with the return he shall produce before the said authority proof of having paid the tax due, in the manner specified in sub-rule (1).

(ii) Where a casual trader conducts occasional transaction or transactions of a business nature in the jurisdiction of an assessing authority and leaves such jurisdiction, he shall, before leaving and immediately following the closure of the said transaction, submit to the assessing authority concerned a return in Form No. 10 E in the manner prescribed in sub-rule (1).

24. Submission of quarterly returns,-
(1) Every dealer who has opted to pay presumptive tax under sub-section (5) of section (6) or compounded tax under section 8, every dealer dealing exclusively in goods included in the first schedule, every works contractor, every Central or State Government or any Union Territory and any Department thereof and any Local authority shall file quarterly returns in Form Nos. 10 A, 10 B, 10 D, or 10 F, as the case may be, for the quarter ending the 30th June, 30th September, 31st December and 31st March to the assessing authority on or before the 15th of the month following the respective quarter.

(2) Where, in the case of a works contractor, the actual turnover for the quarter is not ascertainable, the contractor may file the return showing the estimated turnover and pay tax on the taxable turnover declared, provided that where estimated turnover is reported in the return, the labour charges in respect of which deduction is claimed from the gross receipts shown in the return shall not exceed the maximum percentage given under sub-rule (3) of Rule 9 and the dealer shall furnish the particulars of actual turnover in the annual return to be filed for the relevant year under sub-Rule (2) of Rule 22.

(3) All the provisions of sub-rules (2) to (8) of Rule 22 shall, with necessary changes, apply to a dealer filing such quarterly return.

25. Returns to be submitted by the Head office and Branches: - (1) in the case of dealers having more than one place of business, all returns prescribed by these rules shall be submitted by the Head Office in the State and shall include the total turnover of all branches of the business in the State.

(2) Each branch shall also submit to the concerned assessing authority of the area in which it is situated a return of the turnover of the branch in the manner provided under sub- rules (1) and (2) of rule 22 and intimate to such authority, the fact that the return of turnover of its business is included in the return submitted by its Head office and specify the name and address of such Head Office.

(3) For the purposes of determining whether a dealer is liable to pay the tax under Section 6, the total turnover of all his places of business in the State shall be taken into consideration.

26. Authorizing banks for receipt of tax or other amounts: The Government may, by order, notify any Bank as responsible for receipt of payment of tax or any other amount due under the Act, subject to such conditions as may be specified in such order.

27. Procedure where the payment is made by cheque or Demand Draft
Where payment of any tax or other amount due under the Act is made by means of cheque or Demand Draft, it shall be accompanied by a duly filled up tax Chelan in triplicate in Form No. 8 F

28. Procedure where a cheque is dishonored: - If a cheque presented by a dealer towards payment of tax or other amount due under the Act is dishonored the assessing authority shall issue a notice to the dealer in Form No.10 H and thereupon the dealer shall not be permitted to make payment by means of cheque for a period of six months which may be extended by the assessing authority, with due notice to the dealer, for good and sufficient reasons to be recorded in writing. However, if the dealer pays the amount covered by the cheque and makes prompt payment of tax or other amount due under the Act for a period of six months, the assessing authority shall restore the facility of payment by means of cheque.

29. Submission of records by owners of vehicles and vessels etc:- Owners of vehicles or vessels shall submit to the assessing authority having jurisdiction over the area in which the goods are delivered, copies of bill of sale, invoice, delivery-note, or certificate of ownership as the case may be with a certificate written on the back of such copies of bill of sale, invoice, delivery note, or certificate of ownership, by the person to whom the goods were delivered, to the effect that the goods as per description given were actually delivered to him and taken delivery of by him and duly signed by the purchaser/consignee or his duly authorized agent as the case may be mentioned in such bill of sale, invoice, delivery note, or certificate of ownership. Such copies of bill of sale, invoice, delivery note, or certificate of ownership along with a return in Form No. 11 shall be submitted so as to reach the assessing authority on or before the 10th day of the month following that to which they relate.

30. Submission of returns by forwarding agency, clearing house, etc: - The return mentioned in section 52 shall be in Form No. 11 A and shall be submitted every month so as to reach the assessing authority of the area on or before the 10th day of the month following that to which it relates.

31. Banks to submit returns:- (1) The return mentioned in section 53 shall be in Form No. 11 B, and shall be submitted every month so as to reach the assessing authority of the area on or before the 10th day of the month following that to which it relates. Banks which do not have transactions in Bills as described in section 53 shall submit, in respect of every month, nil returns on or before the said date.

(2) Bills relating to sale of shares and stocks need not be included in the returns.

32. Awarder to submit returns:- Every awarder, including a Department of the State or Central Government, shall forward a return to the assessing authority showing the details of works contract awarded during every quarter, in Form No. 10 C, so as to reach the assessing authority on or before the 10th day following the quarter ending 30th June, 30th September, 31st December and 31st March every year.

33. Signing and verifying of returns: - All returns prescribed under these rules shall be signed and verified in the manner provided therein, in the case of a business carried on by
(a) an individual, by the proprietor or by a person having due authority to act on behalf of such proprietor;
(b) a firm, by a partner thereof or by authorised signatory.
(c) a joint family, by the Kartha or an adult member thereof;
(d) a company or an association or body of person whether incorporated or not or an artificial juridical person, by a Director, Manager, Secretary or the Principal Officer, thereof; or by a person duly authorised to act on its behalf.

34. Mode of submission of returns: - (1) Where any return or statement is required to be filed under these rules, any person filing such return or statement may render or make available the same in the required form which may be written typewritten, printed or in electronic form. Where such return or statement is rendered or made available in an electronic form it shall be accessible so as to be usable for a subsequent reference and shall be authenticated by the secure digital signature of the person signing the return or statement, as the case may be, and the public key is made available to the authority before whom the document is filed. Every dealer, other than a dealer to whom an electronic identity card is issued, who desires to file return through electronic means shall pay an annual fee of two hundred rupees which shall be paid to the assessing authority in the same manner as a registration fee payable under the Act is paid.

(2) Any return under these rules may be submitted either in person, or by registered post with acknowledgement due, or by courier service, or through electronic means.

(3) If the return is submitted in person, the officer receiving the return shall acknowledge the receipt of the same by affixing his dated signature with seal on the duplicate copy of such return.

(4) If the return is submitted in electronic form, the officer receiving such return shall not acknowledge the receipt of the same unless he is satisfied that it contains all the required information and the same is not a read only copy and the details contained in it are transferable to another computer and is duly signed by the dealer.

35. Recording of reasons for rejection of return: - If, in any case, a return submitted under the provisions of these rules is rejected by the assessing authority, it shall record the reasons for such rejection in writing and shall furnish to the assessee a copy of such record within fifteen days from the date of receipt of the return.

36. Self Assessment: - Where any return filed by any dealer is in accordance with these rules, and the assessment is deemed to have been completed under section 21 or sub-section (2) of section 22, the assessing authority shall not be required to give intimation to the dealer.

37. Procedure for audit visit:- (1) The authorization referred to in sub-section (3) of section 23 shall be in Form No.18
(2) The officer authorised under sub-section (3) of section 23 shall issue a notice ot the dealer concerned in Form No.18 A. for conducting an audit visit on a date which shall not be within fifteen days from the date of the notice.

(3) On completion of the audit visit the officer mentioned in sub-rule (1) shall issue a certificate of audit in form No.18 B to the dealer.

(4) Any audit visit under section 23 during a period of one year from the date of commencement of the Act shall be done only under the directions of the Commissioner.
(5) Where a particular purchase bill is irrecoverably lost the dealer shall obtain from the seller a duplicate bill showing the particulars included in the original bill, with a certificate of the seller to the effect that the duplicate bill is issued in the context of the loss of the original bill and furnish the same for audit.

38. Best judgment Assessment:- (1) Before resorting to best judgment assessment under sections 22 and 24, the assessing authority shall serve on the dealer a notice in Form No. 17 calling upon him to produce the books of accounts or other records or evidences, if any, to prove his turnover and tax liability, and also the correctness of the stock statement, goods or the turnover reported or the input tax credit or the refund claimed,
(2) where the dealer proves the correctness of the above claims with reference to the records produced, the assessing authority shall not proceed to complete best judgment assessment at a time and place to be specified in the notice and shall scrutinize them, if produced, as specified in the notice.
(3) The dealer shall be given a reasonable opportunity of being heard before completing the best judgment assessment.

(4) Where the turnover of a dealer is determined and the tax or taxes payable for any return period is assessed under section 23, a notice in Form No. 12 shall be served upon the dealer and the dealer shall pay the sums demanded within the time and in the manner specified in the notice.

39. Audit assessment: - (1) Audit officer authorized under sub-section (3) of section 23 shall submit a report to the designated officer on the audit conducted at the business place of the dealer and the designated officer shall take appropriate decision whether to proceed under section 24 or not. The audit officer shall also issue a certificate of audit in Form No. 18 B to the dealer.
(2) Notwithstanding that a certificate has been issued under sub-rule (3), if the designated officer considers that any further information is required, he may direct the dealer to furnish the required information or direct the audit officer(s) to obtain the required information.
(3) Where any dealer is required to submit any of the books of accounts or other records for the purpose of audit assessment under Section 24, the assessing authority shall serve upon the dealer a notice in Form No. 12 specifying therein the details of the records to be made available, the date on which and the time at which the dealer has to make available the books of accounts or other records at the business place at the time of audit.

(4) On receipt of the notice in Form No.12 the dealer or any other person assisting him in carrying on business, shall make available the books of accounts and other records , stock statements and goods at the business place on the date and time specified in the notice.
(5) (i) Where in an audit under section 23, any irregularity as specified under sub-section (1) of section 24 is detected and such irregularity relates to one return period only and does not disclose any pattern of suppression, the best judgement assessment shall be limited to the return period to which the irregularity relates.

(ii)Where the irregularity detected is the failure to prove the claim of input tax credit or refund claimed, the best judgement assessment shall be limited to the disallowance of the claim of input tax credit or refund, as the case may be. Where any such claim of input tax credit or refund is disallowed, in addition to the demand of the input tax credit or refund illegally claimed, interest under section 31 and penalty at the rate specified under sub-section (3) of section 22 shall be demanded or levied.

(iii) Where the irregularity relates to suppression of taxable turnover and a pattern of suppression is clearly made out, the best judgement assessment shall be in respect of all the return periods to which the pattern is applicable.

(iv)Where the best judgement assessment is done after the expiry of the year in which the relevant return periods falls, and the best judgment relates to more than one return period, the assessment shall be made by a single order.

(v) The assessing authority making the best judgement assessment shall serve on the dealer a notice clearly specifying the irregularities or defects noticed and the manner in which the best judgement assessment is proposed to be completed. Where a pattern of suppression is detected, the pattern and the relation such pattern of suppression bears to the estimate proposed shall be clearly made out in the notice.

40. Assessment of legal representative:- (1) Where a dealer dies and the business is continued, the person running the business after the death of the dealer or executor or administrator , as the case may be, shall notify the death to the assessing authority within fifteen days of the death and file details of the legal heirs. Thereupon, the assessing authority shall conduct such enquiry as he may deem fit to ascertain the particulars of the legal heirs, executor or administrator, as the case may be.
(2)When a dealer dies without having furnished the return or returns prescribed under the provisions of the Act or the rules or after having furnished the returns, the assessing authority may require the executor, administrator or other legal representative, as the case may be, of the deceased person, to perform all or any of the obligations which he might under the provisions of the Act have required the deceased to perform. The tax or fee or other amount due from the deceased for the period up to the date of death, which had already become due or which may be assessed, shall be payable by the executor, administrator or other legal representative of the deceased to the extent of the assets of the deceased in his hands.
(2) The Assessing Authority, before making an assessment on such executor, administrator or other legal representative, shall give every such executor, administrator or other legal representative, as the case may be, an opportunity of being heard.

41. Collection and payment of tax :-( 1) Where a registered dealer collects tax under section 30 he shall show it separately in each bill, invoice or cash memorandum , as the case may be and pay it over to Government in the manner specified under sub-rule (6) of Rule 22.

(2) If the assessing authority is satisfied that any amount or amounts collected by the dealer by way of tax or taxes or any other amount due under the Kerala Value Added Tax Act, 2003, have not been paid by him to the Government, it shall issue a notice to the dealer in Form No.12 A specifying therein the total sum so withheld by the dealer or due from the dealer and the dealer shall pay such sum within the time and in the manner specified in the notice along with the interest as applicable.
42. Deduction of tax by awarder: - (1) The declaration specified in sub-section (2) of section 10 shall be in Form No. 20, the quarterly certificate in Form No. 20 A and the liability certificate shall be in Form No. 20 B
(2) Every awarder making deduction from the payments made to a contractor under sub-section (1) of Section 10 shall pay the amount so deducted to the assessing authority, with whom the contractor is registered as a dealer, and if he is not so registered, to the assessing authority having jurisdiction over the area where the works contract is executed, by means of cheque or by a crossed demand draft in favour of the assessing authority within five days from the date of such deduction or by remitting the amount in the treasury in the name of the contractor within such period and producing the Chelan before such authority, along with a statement in Form No. 20C, within five days from the date of such deduction:

Provided that no amount shall be deducted under sub-section (1) of section 10 if there is no transfer of goods involved in the execution of the works contract or the goods which are transferred in the execution of the works contract are only those falling under the First Schedule or where the payment relates to that portion of a contract which relates to transfer of goods involved in the execution of works contract other than those executed in the state.

(3) Where a works contractor has opted for payment of tax at compounded rates in accordance with the provisions of section 8, the awarder may deduct tax at the compounded rate, where a specific provision is incorporated in the contract or where the contractor produces the liability certificate issued by the assessing authority in Form No. 20 B. The tax so recovered shall be remitted to Government as provided for under sub-rule (2) above.
(4) Where an awarder deducts tax under sub- rule (2) or sub-rule (3) from the payment due to any contractor, he shall issue a certificate to such contractor in Form No.20 F

(5) Notwithstanding anything contained in sub-rule (2) or sub-rule (3), any contractor who pays tax regularly in accordance with the rules, on production of a certificate issued to that effect by the assessing authority in Form. No. 20 E, shall be entitled to payment of the contract amount without deduction of sales tax due on the contract for the period and to the extent of the works contract specified in the certificate.

(6) Any contractor may apply to the assessing authority in Form No.20 D for the issue of such certificate. The assessing authority, if it is satisfied that the applicant complies with the requirement of sub-rule (5), may issue a certificate in Form No. 20 E

(7) Notwithstanding anything contained in sub-rule (2), if the total turnover in respect of a contractor for a year does not exceed the assessable limit prescribed under Section 6, the amount(s) recovered and remitted by any awarder under sub-rule (2) for the period shall be refunded or adjusted, as the case may be, by the assessing authority.
(8) The amount deducted by the awarder from the payments due to the contractor and remitted under sub-rule (2) shall be adjusted against the tax or other amount due from the contractor for the return period during which such deduction is made.
(9) Where the awarder supplies any material to the contractor for use in the works contract and the price of the goods is deducted from the payment made to the contractor, the awarder shall furnish the details to the assessing authority along with the return filed under Rule 32.

43. Notice for further mode of recovery: -The notice referred to in sub-section (1) of Section 35 shall be in Form No. 23 B

44. Calculation of turnover when goods are sold for consideration other than cash: - (1) Every dealer who buys or sells goods for valuable consideration other than cash shall separately specify in the return of turnover which he is required to submit under these rules, the quantity of goods so bought or sold and the description, in sufficient detail, of the valuable consideration for which the goods were bought or sold.

(2) Every dealer referred to in sub-rule(1) shall, in the sale bill or purchase bill, as the case may be, issued under sub-rule(10) of Rule 58 show the details of valuable consideration received or given for such sale or purchase and its cash equivalent separately.

45. Declaration in respect of sales deemed to be in the course of export under Section 5(3) of the Central Sales Tax Act, 1956:- (1) A dealer who purchases goods from another dealer in circumstances in which the sale to him is to be deemed to be in the course of export under sub-section (3) of Section 5 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956) shall furnish to the selling dealer the original and duplicate portions of the declaration in Form No. 21 G duly filled in and signed by him or by any responsible person duly authorized by him in this behalf and shall retain the counterfoil . Form No. 21 G shall be obtained from the assessing authority on payment of a fee of one hundred rupees per book of fifty Forms.

(2) A dealer who claims that a sale is to be deemed to be in the course of export under sub-section (3) of Section 5 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956), shall attach to his return of turnover for the return period, in Form No. 10, the portion marked `original’ of the declaration in Form No. 21 G received by him from the purchasing dealer. He shall produce the portion of it marked `duplicate’ for inspection, if the assessing authority directs him to do so.

(3) Every dealer to whom any declaration form is issued by an assessing authority shall maintain, in a register in Form No. 26 a true and complete account of every such form.

(4) No dealer to whom a declaration form is issued by the assessing authority, shall, either directly or through any other person, transfer the same to another person, except as provided in sub-rule (1).

46. Refund of tax in case of sale of goods in the course of interstate trade or commerce or transfer to outside the state otherwise than by way of sale in the course of interstate trade:- (1) Refund of input tax under section 13 in respect of sale of goods in the course of inter-state trade or commerce or transfer to outside the state otherwise than by way of interstate trade shall be made, in the manner and subject to the conditions prescribed in this rule, to the dealer who has made the inter-state sale and has paid tax under the Central Sales tax Act, 1956 (Central Act 74 of 1956) in respect of such sale.

(2) Every dealer who claims a refund under this rule shall submit an application in Form No. 21B, along with (i) a statement of the interstate sales or transfer to outside the state made during the period to which the claim relates (ii) copies of the transport document (L.R, R.R, air way bill or delivery note as the case may be) along with proof of crossing the state’s boarder , to the assessing authority concerned within thirty days from the end of the month in which the dealer paid the Central Sales tax on the transaction in relation to which he claims refund of the input tax:

Provided that the assessing authority may condone, for reasons to be recorded in writing, any delay in the filing of the application or other documents aforesaid.
(iii) declaration in form No 21J from the dealer who collected the tax in respect of which refund is claimed.
(3) The burden o