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%.
The HSN codes were revised and a separate code 8443.31 was introduced for “Machines which perform two or more of the functions of printing, copying or facsimile transmission, capable of connecting to an automatic data processing machine or to a network“
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