Vidhi Codex

The Karnataka Value Added Tax Act, 2003

The Karnataka Value Added Tax Act, 2003

Tax200390 sections8 chapters

The Karnataka Value Added Tax Act, 2003, establishes the legal framework for the levy and collection of Value Added Tax (VAT) on the sale of goods within the State of Karnataka. It mandates that dealers register, maintain accurate accounts, and file periodic returns to calculate their tax liability. The Act introduces the concept of "net tax," allowing businesses to deduct input tax paid on purchases from the output tax collected on sales, thereby preventing the cascading effect of taxes. It empowers authorities to inspect business premises, establish checkposts, and penalize tax evasion, ensuring compliance while providing a structured mechanism for appeals and dispute resolution.

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Chapter I Chapter I →

  1. 1Short title, extent and commencement
  2. 2Government may, by notification, appoint and different dates may be appointed for different class or classes of goods.

Chapter II Chapter II →

  1. 3Amendment of section 11
  2. 4Liability to tax and rates thereof
  3. 5Amendment of section 23
  4. 6Amendment of section 27
  5. 7Amendment of section 31
  6. 8Amendment of section
  7. 9Collection of tax by registered dealers, Governments and statutory authorities
  8. 10Output tax, input tax and net tax
  9. 11Amendment of First Schedule
  10. 12Deduction of input tax in respect of Capital goods
  11. 13Pre-registration purchases
  12. 14Special rebating scheme
  13. 15Third Schedule on purchases specified in sub-section (5) and sub-section (6) of Section 11.
  14. 16Special accounting scheme
  15. 17Partial rebate
  16. 18Transitional provisions
  17. 19Change in use after deduction of input tax
  18. 20Deduction of input tax on exports and interstate sales, etc
  19. 21Reimbursement of tax

Chapter III Chapter III →

  1. 22Liability to register
  2. 23Voluntary registration
  3. 24Suo motu registration
  4. 25Registration
  5. 26Security
  6. 27Cancellation of registration
  7. 28Obligation of registered dealer to inform changes after registration

Chapter IV Chapter IV →

  1. 29Tax invoices and bills of sale
  2. 30Credit and Debit Notes
  3. 31Accounts
  4. 32Period of retention of accounts
  5. 33Electronic records
  6. 34Requirement to provide documents and information

Chapter V Chapter V →

  1. 35Returns
  2. 36Interest in case of failure to furnish returns or to pay tax declared on returns or other amounts payable
  3. 37Rate of interest
  4. 38Assessment of tax
  5. 39Re-assessment of tax
  6. 40Period of limitation for assessment
  7. 41Power of rectification of assessment or re-assessment in certain cases
  8. 42Payment and recovery of tax, penalties, interest and other amounts
  9. 43Duties of Receivers
  10. 44Special provisions relating to companies
  11. 45Recovery of tax, penalty, or any other amount, from certain other persons
  12. 46Tax payable on transfer of business, assessment of legal representatives, etc
  13. 47Payment and disbursement of amounts wrongly collected by dealer as tax
  14. 48Tax to be first charge on property
  15. 49Period of limitation for recovery of tax
  16. 50Payment of interest on refunds
  17. 51Power to withhold refund in certain cases
  18. 52Production and inspection of documents and powers of entry, search and seizure
  19. 53Establishment of check posts and inspection of goods in movement
  20. 54Transit of goods by road through the State and issue of transit pass
  21. 55Penalty in case of under-valuation of goods
  22. 56Liability to furnish information by certain agents
  23. 57Special evidential requirements relating to banks

Chapter VI Chapter VI →

  1. 58Appointment of Commissioner, Additional Commissioners, Joint Commissioners, Deputy Commissioners, Assistant Commissioners, State Representatives and Commercial Tax Officers
  2. 59Instructions to Subordinate Authorities
  3. 60Clarification and Advance Rulings
  4. 61Jurisdiction of officers and change of incumbent of an office

Chapter VII Chapter VII →

  1. 62Appeals
  2. 63Appeal to the Appellate Tribunal
  3. 64Revisional powers of Additional Commissioner and Commissioner
  4. 65Revision by High Court in certain cases
  5. 66Appeal to High Court
  6. 67Objections to Jurisdiction
  7. 68Petitions, applications and appeals to High Court to be heard by a Bench of not less than two judges
  8. 69Rectification of mistakes
  9. 70Burden of proof

Chapter VIII Chapter VIII →

  1. 71Penalties relating to registration
  2. 72Penalties relating to returns
  3. 73Penalties in relation to unauthorised collection of tax
  4. 74Penalties relating to the keeping of records
  5. 75Penalties relating to production of records and furnishing of information
  6. 76Penalties relating to tax invoices, credit notes and debit notes
  7. 77Penalties relating to seals and to unaccounted stocks
  8. 78Offences against officers
  9. 79Fraudulent evasion of tax
  10. 80Cognizance of offences
  11. 81Disclosure of information
  12. 82Compounding offences
  13. 83Validity of assessments not to be questioned in prosecution
  14. 84Bar and limitation to certain proceedings
  15. 85Courts not to set aside or modify assessments except as provided under this Act
  16. 86Appearance before any Authority in proceedings
  17. 87Power to summon persons to give evidence
  18. 88Power to make rules
  19. 89Laying of Rules and notifications before the State Legislature
  20. 90Power to remove difficulties

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