presented by sri. k m mani, hon’ble minister of finance, govt. of kerala on 13 th of march, 2015. ...

KERALA BUDGET 2015

PRADEEP KUMAR K C

Presented by Sri. K M Mani, Hon’ble Minister of Finance, Govt.

Of Kerala on 13th of March, 2015.

Seven Themes of focus: 1. A vibrant agricultural sector 2. Major strides in infrastructure 3. Sampoorna Arogya Keralam –A Universal Health initiative 4. Digital Kerala 5. Housing for all 6. Encouraging entrepreneurship in the State 7. Welfare Measures -motto of development with care

Budget Highlights

Constituted a Rubber Price Stabilization Fund of Rs.300 crore to support purchase of 20000 metric tones at a market support price of Rs. 150 per kilogram.

Rubber wood exempted from tax & remove all restrictions in the free transport of rubber wood to any other state in India

Set 2000 crore rupees for major infrastructure projects in the state

Kerala to be the first state to offer interest-free loans to farmers, which would increase the inflow of credit to the agricultural sector by an additional 2,000 crore rupees

Various health insurance and welfare schemes to be launched for the weaker sections of the society, including the launch of smart health card

Rs. 25 crore provided  to meet the cost of development of the web applications and services and for the purchase of hardware

Funds raised from the market to be used for the suburban railway corridor, light metros in Thiruvananthapuram and Kozhikode.

Major up gradation of the inland waterway system and airport, power, port, water supply and highway projects

Allocated Rs. 300 crore for Paddy procurement, Rs. 10 crore for Neera production, Rs 75 crore allocated for coconut sector

Allocated Rs 600 crore for Vizhinjam project & Rs 940 crore for Kochi Metro

Welfare scheme for citizens above 80 years of age who have none to take care of them

Allocated Rs 475 crore for IT sector, Rs 482 crore for housing sector & Rs 162 crore for flats for poor.

Allocated Rs 10 crore for Milma, Rs 181 crore for betterment for fishermen's families & Rs 46 crore for clean Kerala programs

Kadanad Vocational Higher Secondary school to be renamed G Karthikeyan Vocational Higher Secondary school & Rs.7 crore allotted for new school building.

The tax exemption granted in 2012 to honey, honey bee box and accessories would be given retrospective effect with effect from 01-04-2005 onwards.

The rent limit under luxury tax with respect to rooms in charitable hospitals enjoying exemption under VAT, will be raised to Rs.2000.

“License for Rent” included to attract same stamp duty as that of rent deeds (lease deeds). This is expected to raise revenue to the extent of Rs.20 Crore.

One time settlement scheme for updating financials for of organizations under Travancore Kochi Literary, Scientific and Charitable Societies Registration Act, 1955 implemented

. It would be made clear that registration under the Act to bemade mandatory if turnover reaches Rs.10 lakh whethertaxable or not. Such organizations allowed to update the returns by paying a

one time fee of Rs.500 for every year delay.

The filing of returns will be automated on online platform. This is likely to generate a revenue of Rs.15 crore.

Kerala Budget 2015-16 encourages entrepreneurship in the State

Allocated Rs. 12 crore for Performance Linked Support Scheme for Startups, for 1000 startups with performance incentive of Rs 10,000 per startup per month for the first two years.

Allocated Rs. 40 crore for the Entrepreneurship Support Scheme to support micro, small and medium enterprises.

An amount of Rs.6 crore has been provided as seed fund to assist young entrepreneurs.

Plantation Tax withdrawn, but be levied on plantations held by companies, societies or trusts. This will lead to a potential revenue loss of Rs.2 crore.

Charitable hospitals registered under Sec.12(AA) of the Income Tax Act, exempted from VAT on payment of a fee of Rs.10000/-.

Multilevel Marketing Companies, their distributors & agents are liable for registration and pay tax under the Kerala Value Added Tax irrespective of their turnover.

Companies & entities maintaining an e-commerce website liable to file the details of inbound and outbound goods sold through such sites on monthly basis.

Transporting agency to file returns with respect of goods dealt by them.

Tax practitioners on implementing GST, an annual renewal fee of Rs.500/- will be introduced. Photo identity cards will also be issued to them.

Negative list as existed prior to 2008 would be reintroduced, incorporating interior decoration and furnishing contracts. These contracts would be non compoundable expecting an additional revenue of Rs.50 crore.

Dealers in cooked food eligible for compounding under Section 8(c)(i) permitted to pay tax at compounded rates for the years prior to their registration also.

TDS rates for Work Contracts executed under Sampoorna Gramin Rosgar Yojna or Beneficiary Committee, made equivalent to their tax rates.

Commercial Taxes

Items Old Rates New Rates

Rice, Rice Products, Wheat

0% 1%

Maida, Atta, Suji, Rava 0% 5%

Petrol 31.80% 31.80% + Rs.1 per liter

Diesel 24.52% 24.52% + Rs.1 per liter

Copyright of Cinema Film

0% 5%

Beedi 0% 14.5%

Nylon, Polyester Ropes & Twine

0% 5%

Items Old Rates New Rates

Plastic Broom, Brushes & Mopes 0% 5%

Poultry Feeds 0% 1%

Bullions (Other than approved by RBI) 1% 5%

Disposable Styrofoam cups & plates, Thermo coal & Styrofoam sheets, Printing flex

0% 20%

Plastic Toys 5% 14.5%

Items Old Rates New Rates

LNG 14.5% 0%(For a Year)

Plastic, Electronic waste, Plastic recycling Plant

5% 0%

F.A.C.T byproduct Wall panel ( Gypsum)

14.5% 0%

Rubber wood 5% 0%

Electronic Items manufactured for Defense

14.5% 5%

All textiles 2%(TOT) 1%(VAT)

Registration & Renewal Fee (KVAT Act)Items Old Rates New Rates

VAT Registration (Turnover above Rs. 25 Lakhs)

Rs.500/- Rs. 1,000/-

VAT & CST Registration & Renewal Fee (irrespective of Turnover)

Rs. 1,500/- Rs. 3,000/-

Luxury Tax – Star Hotel Rs. 6,250/- Rs. 9,375/-

Luxury Tax – Hotel within Corporation Limits

Rs. 1,250/- Rs. 1,500/-

Luxury Tax – Hotels within Municipality Limits

Rs. 1,000/- Rs. 1,500/-

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Items Old Rates New Rates

Luxury Tax – Hotels within Grama Panchayat Limits

Rs. 750/- Rs. 1,125/-

Halls within Corporation Limits

Rs. 1,000/- Rs. 1,500/-

Halls within Municipality Limits

Rs. 750/- Rs.1,125/-

Halls within Grama Panchayat Limits

Rs. 500/- Rs.250/-

Hospital, Home stay, Service Apartment, Villa

Rs. 1,000/- Rs. 1,500/-

House Boat – Registration

Rs. 1,000/- Rs. 1,500/-

House Boat – Renewal Rs. 500/- Rs. 750/-

Security Deposit (Kerala Money Lenders Act)

Lending Limit Old Deposit Amount New Deposit Amount

Less than Rs. 1,00,000/- Rs. 5,000/- Rs. 10,000/-

Rs. 1,00,000/- to Rs. 5,00,000/-

Rs. 10,000/- Rs. 10,000/-

Above Rs. 5,00,000/- NilRs. 10,000 + 50%

increase in security applicable to other slabs.

Penalties (Kerala Money Lenders Act)

Ruling Section Old Amount New Amount

Section 11 Rs. 1,000/- Rs.10,000/-

Section 13 Rs. 1,000/- Rs.10,000/-

Section 17 Rs.50,000/- Rs. 5,00,000/-

Section 18 Rs.1,000/- Rs. 25,000/-

Section 18A Rs. 500/- Rs. 5,000/-

Section 18B Rs. 500/- Rs. 5,000/-

Section 18C Rs. 25,000/- Rs.50,000/-

Stamp Duty ValueItems Old Rates New Rates

Agreement, Memorandum Agreement

Rs. 100/- Rs. 500/-

Duplicate copy of Dutiable product

Rs.100/- Rs. 500/-

Customs, Excise Bond Rs. 50/- Rs. 500/-

Advocate Enrollment Certificate

Rs. 250/- Rs. 500/-

Company MoA only Rs. 1,000/- As per Article 10

Company MoA & AoA Rs. 500/- Rs. 1,000/-

Security Bond, Mortgage Deed

Rs. 100/- Rs. 500/-

ATM Registration – Panchayat areas

Rs. 2,500/- Rs. 1,250/-