kerala Finance act 2016

1. o
oa,og mxae6c6
Goverun€nl of K€rala
2016
Regn. No. KERBlt 20l2?5071
dar.d 5.9.2012 with RNI
R.8, No. KL'TVIN!614/2015 ll
G&Og (,)OUOO
KERALA GAZETTE
. GToODCU)oO5rDo
EXTRAORDINARY
@(r)l&col6oc(oil [dfiUolo.Js]cm]moi
PUBLISHED BY AUTHORITY
5avoerso
Thiruvananrhapuram,
SundoY
28rh Thulam I I92
22nd Karfiik! 1938
ocxd
No.
r960
GOVERNMENT OF KERALA
Lrw (Legisl.tiotr-A) D€prrtDeDt
NOTI}^ICATION
No. 4000nrg. 4212016A aw l3th November.2016
Doted, Thiuvananthopuron, L! tl Thulan 1t92
22nd Korthika. 193E.
The follqwing Act of the Kerala State LeSislature is hereby
published for general infomalion. The Bill as psssed by the L€gislalive
Assembly recelved the assent of the Covernor on the l3th day of
November. 2016.
By order of the Govemor,
B. G HARTNDRANAIH,
Law Secretary.
!p:sa6/2016JS,22

2. )
ACT tt oF 20t6
THE KERAIA FINANCE ACT, 2016
An Act to give ellect rc certain liaancial proposuls of rhe
Aovernment oJ Kerola lor the Financial yeor 20t6_20t2.
Pteamble.-WHENE^ it is expcdient to givc cffccr to certain
Iinancial proposals of the Governmetrt of Kerala for the Financial year
20t620t7;
BE it .naclcd in the Sixty-s€vetrth ycar of the Rlpublic of India as
follows:-
l. Short title and commencement.-<ll This Acrmay be called the
Kerala Fiuam€ Act. 2016.
(2) S.ve as olhcrwisc pmvided id this Acr,_
(i) Cl.Lse (b) of sub.s€ction (8) of scction 9 shall b€ deemed
to haw comc inlo force or the ls day ofApril,2OO5;
(ii) Clausc (b) of suEsecriod (2) of .lcrion 9 sh0ll bc d.emed
to hatc corhe illo forcc on lhc lsl day ofApril,2013:
(iii) Sub-clause (i) of clause (a) of sub.lcction (2) a-od irem
{d) of sub-clause (ii) of clau€ (a) of sub-scclion (2) of scction 9 shall be
dccmcd to have come iato forcc on th€ lst day ofApril,2Ol5;
(iv) Clau-sc (s) of sectiotr ?, scction g, item (a) of suLclaus€
(i) of clsu3€ (a) of sub.s€ction (l) of s€ction q itcrlt (a) of suLclaus. (ii)
of clausc (.) of sub-s€criotr (2) of scction 9. sub,slction (4) of !€ction 9,
sub-clEuscs (i), (ii), (iii) and (v) of cleusc (a) of 6ub_scction (t 6) of
s€ctioo 9 shall bc dcamcd to have coEc ioto forcc oo thc lst dav of
AtrrL 2016:
(v) Sub-clsuse (i) ard erb-ctaule (ii) of chDsc O) of s.Erim 7,
itce (b) snd (c) of sub-ctaus€ (i) of ctausc (a) of sub,s.ction (l) of
scction 9, sub-cl6usc (ii) of clause (a) of sub-scctio[ 0 ) of seclion 9.
3
claus€ (b) of sub-section (l) of serion 9, items (b) and (c) of sub-clause
(ii) of clause (a) of sub-seclion (2) of seclion 9, sDb-section (3) and
s1rb-s€ctions (5) ro (7), clause (a) oI sub-seclion (E) and suEs€tlion (9) !o
(15) of section 9, sub<lausc (iv), sub-claus€s (vi), (vii), (viii) and (ix) of
claus€ (a) of suLsection (16) of section 9 and claus€ (b) and suEclaus€s
(D, (ii), (iii), (v), (vi), (vii) ond (vri) of claus€ (c) of sub.section ( l6)
of seclion 9 shall be deemed to have come into fbrce on the lSth day of
July,2016;
(v0 The remaining provisioDs of this Act shall come into lbrce
at once.
2. Amcndment ol Act ll qf 1957. In the Kerala Surcharge on
Taxes Act. 1957 (ll of 1957), in section 3,-
(a) aftc. sub-section (1A), the foltowinS sub-section jhall be
inserled, namely:-
"(lAA) The tax payable under s€ction 6 of the Kerala Value
Added Tax Acl, 2001 (10 of 200a), shall, with respoct to the sale of water.
soda, sofl &inks. frui( juiccs and other b€vrages whether aeraled or nor,
intended for human consumption and sold in containers of plastic but
excluding those sold in such containers of and above 20 litres, be
incre{sed by a suncharge at lhe mte of frve per ccnt and thc samc shall
be paid over to the Covemment and funher, the provisions of thc Kerala
Value Addcd Tax Act, 2003 (30 of 2004) excluding ftose related to input
rax crcdit and spccial rcbate shall apply in rclation to the said surcharge as
they apply in relation to the tax payable under the said Act.";
(b) in sub-sccrion (2), for the word, brackets, figure and letter
"sub-sections (l) and (lA)" the wo.d, brackets, figur€ and letter ''sub-
sections (l), (lA) and (lAA)" shall be subsliNted:
(c) in sub-scction (3), for lhe word, brackets, figure and lellcr
"sub-sections (l) and (lA)" the word, brackets, fiture and letter
"suEsections (l), (lA) and (lAA)" shall b€ substituted;
3. Amendmenr of Act l7 ol 1959.-ln fte Kemla stamp Act. 1959
(17 of 1959).-
(l) in scction 2,

3. 4
(a) for clause (d), the following clause shall be substirured,
tramely:-
"(d) "Conveyance" includes.
(i) a conveyance on sale;
(ii) deed of amalSamation of lwo or more conpaDies
whether in pursuance of an order of the National Company Law Tribunal
or not:
(iii) deed of arDalgamalion in puBuance of the order
under scclio! ,{4A of BaDking R€gulalion Act, 1949; and
(iv) every other instrument, by which propefty, whether
movable or immovable or any interest in any prop€rty is transfer€d inter
vivos and which is not olherwise spccificolly provided in lhe Schpdule.";
(b) in clause (l). after item (vii), following items shall be
ios€ncd, nemely:-
"(viii) an ag€ement relating to hstallation of AT?vllCDM
or both of them bclqccn banks ald the land owner or renewal of such
an agreemenl;
(ix) an agreemenr relarin8 to installation of Mobile
Tower, betwcen a cotupany 6nd thc land owtrcr or roEcwal of such an
agreement.":
(2) after section 28A, a nel, section 28B shall be inserted,
namely:
'288. Vo luotion of Fla t/Apart rnent.-NoN/ithstarlding arythin8
clnttuned in this Act.-
(i) an inslrumenl transferring ladd including flat/apanmant,
chargeable with duty, shall fully and truly set forth the value of the flat/
apartment therein. For this purposc, the pa(y execuling the inslrumenl
shall fumish a valuation certificate of the flat/apartmeDt conforming to the
criteria Epprov€d by the Central Public Works Departmert for determiring
value of fla/apanmeDt, issued by a competent authority, to bc aulhorised
by the GoverntDenl by notificahon in the O0icial Cazette, to perform $ch
functions as may be specified by CovemmeDt in tbat behali
(ii) the reSistering olhce. shall, befior€ Egisterin8 an inslrumenl
mentioned in clause (i) shall verify that it is accompanied by the valuation
cenificate issued by lhe comperent authority and ensure that the value of
such flavapartm€nt set fonh in the instrumenl is not less than the value
assessed by the competenl aulhorily.":
(3) in the S(]rEfin.E,- .
(a) in serial numbcr 4, rn column (3), for lhe words
"Tu'enty Five rupces", rhe words "Fifly rupees" shall be substrrul€dl
(b) rn serial number 5,
(i) clauses (e) and (f) and the entries against it in
column (3), shall bc omitted;
(ii) clause (g) shall be re-letlercd as clause (e);
(c) in serial numb€r 21, in clause (i), in column (3), lb. the
words "Six rupees" the word$ "Eight rupees" shall be substituted;
(d) in serial number 22, in claus€s (i) snd 0v), rn columo (3),
for the words Six nrpees" the worG "Eight rupees" shall be substiruted;
(e) afler serial number 22 ard ft€ entriB a9ine it in columrB (2)
and (3), lhe following serial number and enlries shall, respeclivcly. b€
insened. namely:-
5
"22 A. Conveyance as defined
in rtem (ii) and (iii) of seclion 2
(d) nor being a t.aDsfer charged
or cxcmpred under No.55.
Five rupees for every 100
rupees or parl thereol'of
the fair value of the land and
lhe value of other immovable
properlies of the lransferor
company. which is the subjecl
maller of the conveyancei or
the aggregale of the markcl
value of shares or olhcr
markekble s€curilies. which rs
the subjecr matter of rlre
conveyance issued or allotted
in exchange or otherwise; ot
the amount of considerarion
paid tbr such amalgamation
whichever is highei'.

4. 6
,-. (0 in-serial number 23, for the exisring enries in columns (2) and(f), lhe following enrries shall be subsrituled, namely:
..Copy
or exfact. ccrtified lo be a tlue copy or Fifly rupees
exrracl by or by order of any public ofl.iccr
and not chargeable under the law for the time
being in force relating to courl tbes
Eremptions
Copy of aay pr6prsl n,hich a public offic€r is
expressly required by law to male or finish
for rccqd in @y publb offrce or for any pblic
pu4lose.":
. . (g) rn serial numtrer 3t. Ior the cntries in columns (2) and (3), rheIbllowing enlries shall be substituted. nanely._
"Ori-instrument not bein,r a
sellement or will o. t.*.f.i
(a) Whe,e the Sifi is in fhvour
of father, rDother, grandfather.
grandmother, husband, wrfe.
son, daughtcr, brothet sister or
grandchildren of a person and
if:_
(i) the cxreht of land involved
in rhc property tmnsferred
by rhc instrumenr is dve
acres or lcss
Two rupees for ev6ry rup6s5
100 or pan rherEof of lhe fair
value of the propeny and the
value of the other propcnies
set fonh in the instrument or
the value of ali th€ properlies
set fb h in the instruftent
whiohever is higher, subjecr to
a maximum of Rupees 1.000.
7
(i) the extent of land involved
in the propeny transferred
by thc instrument is above
live acres
Two rupees for every rupcrs
l0O or pa( lhercof of the farr
value of the prope(y and lhc
value of the other properties
sel forth in the inslrumenr or
the value of all ihe prope(ies
sel tbrth in the instrunenr
whichever is higher
(b) in any other case Th€ same duty as a convcyaDce
(No.2l or 22 as the casc nlay
be).";
(h) in serial number 39, in column (3), for the words 'Fifty
rupecs", lhe words "One hundred rupecs" shall be substiruted;
(i) in s.rial numb€r 42. for the entdes h colunms (2) and (3).
the followinS cfltrics shall be substituted, naDrely:
''Pafl ilionJnsnrment of [as d€6nod
by s€ction 2 (k)l:
(a) Where rhe panition is among
all or sorne of thc members of thc
family and if-
(i) th€ extent of land rnvolv€d in One rupee for evcry rupees
th€ property divided by the 100 o! pan thercof of rhe thir
rnstrumenl is five acres or less value of the separalcd sharc
or sharcs of propefly and lhe
valuc of orher propeflies in
such sepaiated shar€ or sharcs
sel fonh in the instrumcnl. or
of thc value of all rhe
propertiei of the separaled
sh6re or sheres as sel fo(h in
the iNtrument. whlchever is
higher, subject to ihe maxtmum
of n pees I,000.

5. 8
(i.i) the exrerl of land involved in
the properry divided by the
instrument is above five abres.
One rupee for every rupees
100 or part thercof of rhe fair
value of the separated share
or shares of property and the
value of ot her .properl ies in
such separated share o
shores ser forth in th
instrumenl, or of lhe value
all th€ properties of rh
(b) in any other case
separated share or shares as
sct fo h in the instrumcnt,
whrchever is higher
Six rupees for every rupees
100 or part rhereof of t
amount of the value or f6ir
value of the separated shsre
or shares of the property
whichever is higher";
0) in s€ria.l number 4E, for thc entries h columns (2) and (3),
tjre following entries shall b€ subsrituted, naDely:
"Release, that is to say, any
instrument (nol b€ing such a
releasc as is provided in
section 24), whereby a person
rcnouiccs a claim upon
anofher person or against any
specified property
(a) When such Eleas€ operates
in t'avour of father, mother,
grandfather, grandmolher.
husband, wife, son, dlughrer,
brcther, sister, gm ndchildren or
legal heirs of the deceased
. children ofa p€Non and if
9
(i) the extelt of land involved
in rhe property in which
right relrnquished by the
instrument is five acres or
less
(ir) the cxtent of land i[volved
in the property in which
right rclinquished by rhe
instrument is above live
actes
(b) in any othcr case
One rupec for every rupees
100 or part thereof of th€
amount of the farr value of
other properties or claims of
which the right is rElinquished
in proporrion to right
rElinquished or value of all rhe
properties or claims of which
the right is relinquished in
proPortion lo the right
relinquished or consrderarion
for the rclaase, whichever is
higher, subject to a malimum
of Rupoes I,000.
One rupee for every rupccs
100 or pan lhereof of lhe
amount of lhe fair value of
olher propenies or claims of
which the right is relinquishd
in proportion to right
relinquished or valuc of all the
propenies or claims of which
thc right is relinquished in
proporlion to the right
relinquished or considerarion
for the retease. whichever is
hiSher
The samc duty as a
conveyance (No. 2l or 22 as
the case m6y be) for such
aDlount or valu€ of the
propefty or claim or fair value
of the prop€ny of which rhe
right is relinquished in
Proportion lo right rElinquished
or' considcralion for the
release, whichever is higher.";

6. (k) in scrial numb€r 51, clause (a), for the enlries in oolumns
(2) and (3), the following entries shall be subsrituted, namely:-
"Setlleme t-
A. instrument of(including a de€d
of dorver),
(a) Where rhe seltlemenr is in
fhvour ol falher. mother.
grandfather. grandmother.
husband, wife. son. dau!hrer.
brother. sisrer or graadchi-ldren
of a person and if
(i) the exle of land involved in
the property se(led by the
instrument is five acres or
less
l0
(u) drc exte'rt of land involved in
the properly settLed by lhe
instrumeDt is above five
acrcs
(b) in any othcr cas€
Two rupees for every
rupees 100 or F,an thercof of
the amounl of the fair value
of othe. propenies set fo(h
in the instruments or the
value of all properties sel
forth in such instrumenl,
whichevcr is hiSher, subject
to a maximum of Rupees
1.0@.
Two nrpees fbr every
rupoes 100 or pan fiereof of
the fair value of the land
and thc value of other
properties set fonh in rhe
insrumenl or $c !6luc of all
prop€rties scl fonh in such
instrument, whichever is
highec
The same duly as Bonomry
Bond (No. 14) for a sum
equal to amount or value of
the propcfly scttled as seF
forth in such instrumenr or
fair valuc of land, whichever
is highcr.".
ll
4. Ane (lment o/ Act l0 oJ 1960. ln the Kcrala Court Fees and
Suits Valuation Act, 1959 (10 of I960),
(1) in seclion 76. for sub-section (l). the tbllowing sub'section
shall be substituted, namelyi-
-(l) NolwirhsEndrng an)'thing conuined in lhis Acl or any other hw
lor the rrne being in force and subjec( to section 4,A of the Act and
sub-rule (l) of rllc 397 of the Kcrala Motor V€hicle Rules, 1989 it shall
be competent for the Government lo levy an additlonal courl fee by
nolrfication in the Caze(e, in rospect of original pctilions, original
applications, appeals or revisions to tribunats, app€llate authorities and
original suits in Civil Courts olher lhan in Family Coun at a rale not
cxc€eding one percent of the amount involved in the disPute and ln olher
cases at a rale nol exceeding one hundred rupees for each original suil,
origrnal petition. origrnal application, app€al or rEvision
Ept ndtiod:-The term "amounl involved in the dispule" as
specified in sub-section (l). rherc it is capable ol'valualion, does not
include the amounl of valualion Ibr lhe purpose of cour( fee, in surls for
recolery of possession, panition and suits of si lar naturc and wherE fixed
coufl fbe is specified under lhis Acl."l
(2) in the SCHEDULE II, in itern (iii) ot Anicle 3,-
(a) in suuitem (C), for the enlD/ "one pcrcent of the assessed
income, subjecl to a maxiDum of tcn lhousand rupees" in column (3)
allainsl clause (c) in coluntn (2). the entry 'hvc percent of the rclicf
sought for, shall be subslituled;
(b) in sub-it€m (D), for the entry "one percent of the assessed
net wealth, subject to a maximum of ten lhousand rup€es" itr column (3)
against clsuse (c) in column (2). the entry "five Percent of the relief
sought 6of'. shall be substiluted.
5. Ane dnct,t ol Act l5 ol l963. In lhe Kerala General Sales
'fax Act. 1963 (15 of 1963), in seolion 238,
(a) for sub-section (l), the following sub'section shall be
substrtured, nemely:-

7. 40
(ii) after serial number 8. rhe entry againsr il in
columns (2) and (3), the following serial number and entries shall,
respectivcly, be ins€ned, namely:
"8A. Basmatr Rice sold in packages with MRP print.d
on such packages ":
(iii) after serial number 24 and the entries against lt in
columns (2) and (3), the following serial number and enlries shall.
respectrvely. be insofled, namely: -
,,24A Coconur Oil .+..."i
(iv) for scrial number 30A and the entries against it in
columns (2) and (3), the following serial number and entries shall,
respectivcly, b€ inscned, namely:-
30A. Cooked Food. othcr than.-
(i) those served lo any airlinc service
company or iDstilution or shipping
company for s€rvmg in aircraflship or
steame! or served in aircraft, ship.
' stc-amer and five star holels atrd
4t
(vii) Aflcr serial number l09A antl rhc entries againsr
it in columl6 (2) and (3), the following sorisl numb€r and enuics shali.
rcspectively, bc iDsened, namely:-
(viii) afler serial number 14lA and the entries agairsl
in columns (2) and (3), the following serial numbers and entries shall,
respq:tively, bc inscnd namely:--
'1418. Washing soap bars and cakes
manufactur€d using cocoDut oil
l4lc. Wsstc ad scrap of primary cells
primary battcries and electric
6ccumulators: spent primary
cclls, spenl primary bslaries
and spe ele.tric accueulalors;
elcctrical parts of machinery
or apDamtus. 8548.";.
(d) i! List A,-
(i) in serial number Il8, h item 15 for entries againsr ir in
columns (2) and (3) th€ following entries shall, Espcdively, be sub,srirulcd,
narnely:-
"recyclcd plasric.
lO. lalidation.-l) liorwirhsraodiDg ttrc lap6c of the Kerala F'inanqe
Bjll, 2016 (Bill No. 396 ofThincenth Kerah Legistarive Assembty)
(herciruffer rcfcrcd to ss thc said Bill) and the ccsscr of force of law of
thc dcclarEd Fovisions of isid Bill anylhing doo€ or any aclion takoD,
ittcluding lcw and colk€-tion of t x or duty, &riry 0lc period iom lhe Isl
day of April, 201 6 to thc I 7rh &y of July, 20 I 6, by vituc of lhe dectarcd
pmvisions contaiDcd in thc said bi[, under thc Kcrala Surcharge on Taxes
Act, 1957 (ll of l95A or und.. thc K.rals Stsmp AcL 1959 (t7 of 1959)
or under the Ke.ala Court Fees and Suits Valuation Acr, 1959 (t0 ot
1960) or under the Kerala Tax on Luxuries Act, 1916 (32 of 19761 ot
uDder lhe Kemla Agriculrural Incomc Tax Acr, l99l (15 of lggl) or
under ihe Kerala Value Added Tax Acr, 2003 (30 of 2OOa) (hercinafier
(ii) burgers, pizzas. tacos, doughnurs,
sandwiches, burger-pattys. pasta.
bread-fillings sold by restaurants
having a brand name or trade mark
registered under lhe Tra.de Marks
Act. 1999i
(v) in serial number 33, in the headin8 in column (2),
the following words shall bc added at lhe end, [amely:
"other $an tho6c specrfically mentioned in the lablc in
claus€ (a) of suUsection (l) of secrion 6.";
(ri) serial number E6B and lhe entrics against it in
colum$ (2) and (l) shall be omilled;

8. 42
referred to as the resp€ctive Acts) as they stand amended by the said Bill,
shall be deemed to be and to have always been for all purposes, validly
and efectively done or taken under the provtstons of the respecrive Acrs,
as if the said amendments had been in force at all material limes.
(2) Notwithstanding anything contained in the respective Acts
during the period f'rom lst April, 2016 ro lTth day ofJuly,2016 during
which the declar€d provisions contained in the sald Bill was in force,
an),thing done or any action taken by virtue of the said provisions of the
said Bill shall be deemed to have been validly done or taken under the
respective Acts and no action shall lle against any dealer or aulhority on
the ground of short levy or refund of excess tax or duty and rax or duty
collected, if ary, by a dealer or an authority, as the cas€ may be, shall be
paid over to the Covemment.
(3) Notwirhstandmg an,4hing contained in the Kerala Value Added
Tax Act, 2003 (30 of 2004) any tax collected or paid at higher rare by
virtue of the provisrons ofthe Kerala Finance Bill. 2016 (Brll No. 16 of
the XIV Kerala Legislative Assembly) in respect of the period with eftbct
on and fiom the l8th day of July, 2016 !o the date of publication of this
Act, shall be deemed to have b€en validly done and any tax collected or
paid by a dealer or authority at such higher rates shall be de€med to
have been validly collecred or paid and the tax so collecred shall be paid
over to the COvernment and shall not be refunded.

9. o
oaoo (n)(idocd
Cov€mme of Kefllt
2016
R.gn. No KERElt 0lZ45o73
dlted 5-9-2012 wilh RNI
B.g, No, KL/TV(NY634/2015-1,
ceog om)od
KERALA GAZETTE
@(IDC0)CO6trDo
EXTRAORDINARY
@or6co1&acorl talfi D'l(!Do.Jsl(UE)t(m.6;
PUBLISHED BY AUTHORIry
Giloloxtrn t{Gol
orjr.
Thirulurtrth4,utaD,
Thursdly
2nd vrirohiker I 192
No.
mr. ooJbllJd i,
, lTdr NovEmb€r 2016
rE. afiirDf-o ro
26li Kfffiil(' l93E
2003
GOVERNMENT OF KERALA
'
L.w (L.giilrtiotr-A) I)ep.rtDe
ERRATA
No. 4000/Leg.AZ20l6llaw lTth Novenber 2016
Dated, Thiruvananthopuran)id V-iiiifu n, 1 I 92
S.R.O.No.694/2016.-[n rhe Kerala rr'::::':::':;:,
(lE of2016) issued under the Notification No. 4OOOllJje. A2l2l16/Law
dated l3thNovember,20l6 and publisbed i! the Kerala Cazette
Extraordiaary No. 1960 dated l3th No!,€mber 2016,-

10. 2
(l) In section l, in suEscclioE (2),-
(a) in clsuse (iv), /or "cl.use (a) of scctioa 7- real
"section 2, cl.usc (b) of sub-s€ction (l) of scclion 3,
clause (b) of sub-sectioo (3) of section 3, se.tion 4";
(b) h clause (v),-
(i) /or "sub-clause . (i) and sub-clause (ii) of
clause (b) of sectioo 7", .edl "sub-section (2) of
s€ction 3, claus€s (a), (c), (d), (0, (8), (h), (i), 6) and (k)
of sub-scction (3) of acclion 3, scction 5, scction 6,
sub-clausc (i) and sub-clause (ii) of clausc (b) and
' "clause (c) of section 7";
(ii)/or *clauce (c) of suuscctioD (16) of section 9" /edd
"clause (c) and (d) of suEscctioD (16) of s€ction 9".
(2) tn secliotr 10, sub-section (3), /or "the Kersla Value Added
Tax Act, 2003 (30 of 2004)" read "rhe Keftla
Value Added Tax Act, 2003 (30 of 2004) and the Kerala
Sramp Act 1959 (17 of 1959)".
By oadcr of tbe Covemor,
B.C. ff,cltNonexerx,
Low Secretary.
Explrnrtory Note
(This docs nol form part of the erlat4 but is intended to indicate ils
gencrEl purport,)
In the Kcrala Finance Act, 2016, in clauscs (iv) and (v) of
sub-s€crion (2) of s€ction l, and iD sub-section (3) of srction l0 cerrain
typographical cnors havc cr@t in. The Govemmcnt have dccided to
corrcct the mistake thmugh an crrata.
Thc errala is intend€d !o achievc the above objecr.