Section 25AA in The Kerala Value Added Tax Act, 2003
25AA. [ General disciplines related to assessment under this Act. [Inserted by Kerala Act No. 5 of 2019, dated19.7.2019.]
(1)In cases where tax evasion has been detected and the offence has been compounded or penalty has been imposed under this Act, the assessment under the provisions of this Act shall be done only on the suppressed turnover detected:Provided that in cases where pattern of suppression has been established, the assessment shall be completed by adding fifty percent of the suppressed turnover.(2)In case of assessments initiated from the scrutiny of electronically filed returns, annexures and other declarations,-(a)with respect to unaccounted purchases from registered dealers within the State by dealers, notwithstanding anything contained in this Act, input tax credit shall be granted on such purchases, provided the dealer admits such purchases. In such cases, assessment shall be completed by adding 20 percent gross profit on the purchase value.(b)In case of detection of suppression or variation in inter-State purchases, inter-State stock transfers, import and purchases from unregistered dealers, 25 percent gross profit shall be added to such purchases for arriving at the sale value and assessed to tax.(c)If sale suppression is detected, the suppressed turnover shall alone be assessed, without any additions.(3)Discounts, incentives and other income shown in trading, profit and loss account shall be assessed only if, it affects the output tax or input tax credit.(4)Suppressed turnover of works contractors and cooked food dealers who have paid compounded tax under clauses (a) and (c) of section 8 shall be assessed at the applicable compounded rate by adding 25 per cent of the suppressed turnover and in such cases the option of compounding shall not be cancelled.(5)If any suppression of turnover of gold is detected with respect to dealers who have paid compounded tax under clause (f) of section 8, such suppressed turnover alone shall be assessed at the schedule rates applicable to the goods and in such cases the option of compounding for that year shall not be cancelled.(6)If any interstate purchases are detected with respect to a cooked food dealer paying tax under sub-clause (i) of clause (c) of section 8 in violation of item (d) of the said sub-clause, such purchases shall alone be assessed to tax by adding 20 percent gross profit, and the compounding for the years shall not be cancelled.(7)Those dealers, who have defaulted in submitting the statutory forms for applying concession or exemption in tax under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) or under this Act, assessment shall be limited only to such turnover not covered by such statutory forms.(8)If any difference in turnover is disclosed in annual return, trading, profit and loss account and audit report, is noticed, subject to other provisions of this Act, the assessment in such cases shall be limited only to such variation.(9)in case of variations between return and books of accounts pointed out voluntarily by the dealer subject to the returns annexures and statements filed by the dealer assessment shall be limited to such differential turnover only.]
