Kerala Finance Act, 2007 - Multi Function Devices
The Kerala Finance Act, 2007 has finally been enacted with a number of changes from the proposals in the Kerala Finance Bill, 2007.
The Third Schedule has been amended to replace the list of IT Products taxed @ 4%. A major change is the new HSN Code of printers. Earlier Printers were under HSN Code 8471 and multi-function devices comprising copier, printer, scanner and fax were also classified under this Code and were taxed @ 4%. The Kerala Government had maintained that this was not correct as photocopiers were taxed @ 12.50%. However, as these devices were classified under HSN Code 8471, they were liable to be taxed @ 4% and not 12.50%.