In exercise
of the powers conferred by section 8-A of the Karnataka Sales Tax Act,
1957 (Karnataka Act 25 of 1957), the Government of Karnataka hereby
reduces with immediate affect, the rate of tax payable under the said
Act to 'Nil' on the sales of raw materials, components parts and packing
materials, by a registered dealer to one hundred per cent Export oriented
units located in the State subject to following conditions and restrictions:
| (i) |
such
goods are put to use by the one hundred per cent Export Oriented
unit in the manufacture of goods for export; |
| |
|
| (ii) |
The
time limit for use of such goods in the manufacture of goods for
export shall before the expiry of the accounting year immediately
succeeding year in which the goods are purchased. |
| |
|
| (iii) |
The
one hundred per cent Export Oriented Unit export its entire production
of goods subject to relaxation permitted by Government of India
from time to time; |
| |
|
| (iv) |
Where
for any reason, the One hundred per cent Export Oriented unit fails
to comply with the condition (iii) above, it shall forthwith cease
to be eligible for the benefit of this Notification. |
| |
|
| (v) |
Where
for any reason the restriction or condition stipulated under (i),
(ii) and (iii) above is contravened or not complied with, either
wholly or partly, the provisions of clauses (a) and (b) of sub-section
(5) of section 8-A of the said Act shall apply and the one hundred
per cent Export Oriented unit shall be liable to pay an amount equal
to the tax payable at the rates prescribed under the said Act, on
such purchases in respect of which such contravention or non- compliance
has taken place. The amount so payable shall be deemed to be amount
due for the purposes of Section 13 of the said Act. |
| |
|
| (vi) |
Registered
dealer effecting the sale to One hundred per cent Export Oriented
unit shall produce before the assessing authority, a declaration
in the enclosed format signed by the said Export Oriented unit. |
| |
|
| (vii) |
The
One hundred per cent Export Oriented unit seeking this facility
shall produce before the assessing authority a Certificate issued
by the authority authorized by the Government of India certifying
that it is registered as a One hundred per cent Export Oriented
unit. The said Certificate shall be produced, in proof of its being
valid, in each assessment year. Within sixty days of commencement
of assessment year. |
| |
|
Explanation
I - For the purpose of this Notification:
| (1) |
"One
Hundred Percent Export Oriented Unit" means a unit which is certified
to be so by the authority authorized by the Government of India
|
| (2) |
"Export"
means export as defined in sub-section (1) and (3) of section 5
of central Sales Tax Act, 1956 (Central Act 74 of 1956). |
Explanation
II - The export oriented units are also eligible for exemption from
payment of tax on the turnover relating to purchases of goods liable
to tax at the purchase point.
|
By
Order and in the name of the |
|
Governor
of Karnataka, |
|
Sd/-
(S. DIVAKAR) |
|
Under
secretary to Government, |
|
Finance
Department (C.T.-I) |
|
|
|
|
Print