Forest Development Tax

Referenced in the objects and reasons of Amending Acts 24 of 2009, 41 of 2015, and 23 of 2016 regarding the levy of Forest Development Tax on disposal of forest produce. (1) Notwithstanding anything contained in this Act, in respect of forest produce disposed of by the State Government or by a corporation, owned or controlled by the State Government or a body notified by the State Government by sale or otherwise, there shall be levied and paid to the State Government a fee at the rate of twelve percent on the amount of consideration paid therefor. Provided also that, in respect of minerals which is a forest produce the rate of Forest Development fee shall be twelve percent. Explanation: (1) For the removal of doubts, it is hereby declared that for the purposes of this sub-section, the words "a body notified by the State Government" shall mean and include all entities directly or indirectly engaged in disposing of forest produce found in, or brought from, a forest, as individuals or other entities including Hindu Undivided Family, Company or foreign Company, partnership firms, societies, cooperative societies, other bodies corporate, trusts, lease holders of mines and quarries situated in forest area or any other association or committee or person, whether or not such individuals or entities constituted themselves into a juristic entity and whether or not such individuals or entities collectively come together and act as a group or body. Explanation: (2) For the removal of doubts, it is hereby declared that for the purpose of this sub-section, the words, "or otherwise" includes disposal through captive consumption. Explanation: (3) For the removal of doubts, it is hereby declared that Forest Development Fee shall be levied on the disposal of the forest produce irrespective of whether such forest produce is intended for sale inside or outside the State of Karnataka or for the purpose of export or for captive consumption. (1A) Notwithstanding anything contained in sub-section (1), no fee shall be payable to the State Government by a corporation, owned or (1-B) Notwithstanding anything contained in subsection(1), no fee shall be levied on the forest produce which is not found in or not brought from the forest except when it is disposed of by the State Government; (1-C) Notwithstanding anything contained in subsection(1), no Forest Development Fee on forest produce shall be payable to the State Government, for which no demand was raised during the period from 16th August of 2008 till the commencement of the Karnataka Forest (Amendment) Act, 2015 (Karnataka Act 41 0f 2015); and (1-D) The State Government may make rules regarding manner of Levy, computation and collection of Forest Development fee from a retrospective date. (2) The said fee shall be collected along with such consideration. (3) It is hereby declared that the said fee shall be in addition to and not in lieu of any fee payable in respect of such produce under any other law in force. (4) There shall be levied and collected interest at the rate of eighteen percent per annum till the date of payment or recovery of all fee dues.