Commercial Taxes Department – Government of Karnataka introduced the Karasamadhana Scheme- 2017

Commercial Taxes Department – Government of Karnataka introduced the Karasamadhana Scheme- 2017

April 6, 2017 FISCAL 2

Commercial Taxes Department – Government of Karnataka has approved the Karasamadhana Scheme 2017. In view of the proposed introduction of Goods and Service Tax this scheme will be introduced aiming at reducing the arrears of tax and other amounts due. This scheme has been formulated for waiver of penalty and interest under the Karnataka Sales Tax Act,1957; the Central Sales Tax Act, 1956; the Karnataka Value Added Tax Act. 2003; the Karnataka Tax on Entry of Goods Act, 1979; the Karnataka Tax on professions, Trades, Callings and Employments Act, 1976; the Karnataka Tax on Luxuries Act, 1979; the Karnataka Income Tax Act, 1957 and the Karnataka Entertainments Tax Act, 1958.

 

The Scheme grants waiver of 90% of arrears of and interest payable by a dealer under the Karnataka Sales Tax Act. 1957 ( hereinafter referred to as KST Act) and the Central Sales Tax Act (hereinafter referred to as CSI’ Act) relating to the years upto 31/03/2005.

It  grants waiver of 90% of arrears of and interest payable by a dealer under the Karnataka Value Added Tax Act. 2003 (hereinafter referred to as KVAT Act) relating to the assessment/ reassessment orders under the provisions of KVAT Act the tax periods relating to all the years commencing from 01 /04/2005 upto 31/03/2016 and assessment/ reassessment orders under CST Act the tax periods relating to all the years commencing from 01.04.2005 upto 31/03/2016.

It grants waiver of 90% of arrears of penalty and interest payable by a dealer or person or proprietor, as the may be, relating to the assessment/ reassessment for all the years upto 31/03/2016 under following Acts namely. –

Karnataka Tax on Entry of Goods Act, 1979 (hereinafter referred to as KTEG Act);

Karnataka Tax on Trades, Callings and Employments Act. 1976 (hereinafter referred to as KTPTC & E Act);

iii.        Karnataka Tax on Luxuries Act, 1979 (hereinafter to as KTL Act);

iv.        Karnataka Agricultural Income Tax Act, 1957 (hereinafter referred to as KAIT Act); and v.         Karnataka Entertainments Tax Act, 1958 (hereinafter to as KET Act).

Grant of waiver of penalty and interest are subject to conditions and procedure as specified in the document attached.

The dealer opting for this Scheme shall submit separate Application relating to each assessment/ reassessment order relating to the tax for the years commencing from 01/04/2005 upto 31/03/2016 electronically through the website http://ctax_kar_nic.in on or before 31/05/2017 in the manner as specified in the website. Duly signed copy of the said Application downloaded shall submitted to the concerned Assessing Authority / Prescribed Authority / Recovery Officer as prescribed on or before 31/05/2017.

Source : Commercial Taxes Department – Government of Karnataka.

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2 Comments

  1. raju

    May 8, 2017
    Reply

    dear Sir,

    we had applied appeal for the fy 2007-08,2008-09,2009-10 , tax amount was- Rs-59,84,427/- interest was Rs-,28,83,537/- Penalty was Rs-5,98,441/- we applied appeal dated at 2012 august total tax payable was = 80,03,696/- 50% of tax paid for appeal perfos , so now withdrawal the appeal under scheme "KARASAMADHANA" How match we will pay tell me sir, my out standing balance was Rs-40,01,848/-

    • Lexplosion

      May 11, 2017
      Reply

      From the above explanation we understand that the total cumulative pending dues for FY 2007-08 , FY 2008-09 and FY 2009-10 is
      Tax Amount - Rs-59,84,427/- .
      Interest - Rs.28,83,537
      Penalty - Rs. 5,98,441

      Total Rs 94,66,405

      Now in Finance Year 2012 you again filed appeal. Can you please clarify whether this appeal is separate from the appeal filed for FY 2007-2008, FY 2008-09 and FY 2009-10 or not.

      Assuming this appeal has been filed in continuation of the appeal filed earlier, you have deposited 50% of the tax Amount ie Rs 40,01,848 in order to appeal and your Outstanding Balance is Rs 40,01,848/-.Can you please clarify Tax Amount of Rs 59,84,427/- increased to Rs 80,03,696/-.

      Assuming it to be on account of some revision, actionable needs to be taken in accordance to the following provision of Karasamadhana Scheme, 2017..

      Clause 2.4 If the dealer or person or proprietor, as the case may be, has filed Appeal or the other Applications against the order or proceedings relating to “arrears of tax” before any Appellate Authority or Court and if disposal of such Application is still pending, then the dealer or proprietor, as the case may be, shall withdraw the Appeal or other Application before availing the benefit of waiver of arrears of penalty and interest under this scheme.

      If Appeal or other Application is withdrawn, the quantum of arrears of tax / penalty and interest for the purposes of this Scheme shall be considered as per the order against which Appeal or other Applications had been filed which are since withdrawn to avail the benefits of the Karasamadhana Scheme, 2017.

      In light of above provision, please deposit the arrears of penalty, interest and tax before 31 st May,2017.
      Kindly check the requisite amount of percentage to be deposited. Also before withdrawing the appeal you need to be sure that you are not following under the exclusion provisions of Karasamadhana Scheme. To get details Actions and analysis of Karasamadhana Scheme, you can also subscribe To Komplify – Tailor made solution for SMSEs.

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