Karasamadhana Scheme- 2019 : This scheme is introduced with a view to reduce the arrears arising out of the enactments administered by the Commercial Taxes Department which existed before the introduction of Goods and Service Tax (GST). Accordingly a scheme for waiver of penalty and interest under the provisions of the following acts has been formulated.
a. The Karnataka Sales Tax Act,1957,
b. The Karnataka Value Added Tax Act,2003,
c. The Central Sales Tax Act ,1956,
d. The Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976,
e. The Karnataka Tax on Luxuries Act,1979,
f. The Karnataka Agriculture Income Tax Act,1957, and
g. The Karnataka Entertainment Tax Act, 1958.
h. Karnataka tax on Entry of Goods Act , 1979,
Features of the Karasamadhana Scheme- 2019:
1. It grants waiver of 100% of arrears of penalty and interest payable by the dealer under The Karnataka Sales Tax Act,1957 and Central Sales Tax Act ,1956 relating to the assessment/re-assessment years upto 31-3-2005,already completed and as the case may be, to be completed on or before 30th June 2019 under the KST regime.
2. It grants waiver of 100% of arrears of penalty and interest payable by the dealer under The Karnataka Value Added Tax Act, 2003, and Central Sales Tax Act, 1956 relating to the assessment/re-assessment years already completed and to be completed on or before 30th June 2019.
3. It grants waiver of
a. Penalty levied under section 72(1)(a) or 72(1)(b) for failure to furnish return under the KVAT Act and consequential interest subject to the condition that admitted tax as per the return is paid in full.
b. Penalty levied under section 74(4) for failure to submit copy of the audited statement of accounts in FORM VAT 240 under the KVAT Act and consequential interest subject to the condition that admitted tax liability, if any, as per Form VAT 240 is paid in full.
4. It grants waiver of 100% of arrears of penalty and interest payable by the dealer or person or proprietor as the case may be relating to the assessment or reassessment already concluded and to be concluded up to 30th June 2019 under the acts as mentioned above.
Conditions of Karasamadhana Scheme- 2019:
Grant of Waiver of penalty and interest is subject to the following conditions:
1. Any dealer or person or proprietor as the case may be, who makes full payment of arrears of tax on or before 30-09-2019 shall be granted waiver of 100% of arrears of penalty and interest payable. However, any penalty levied by the Registering Authority under section 10-A of the CST Act shall not be eligible for benefit of Waiver under this
2. Where the dealer has no arrears of tax but has arrears of penalty and interest only, relating to the assessments or reassessments already completed and to be completed, As the case may be, on or before 30th June 2019, such arrears of penalty and interest shall be eligible for waiver.
3. Where dealer has filed an appeal or any application against the order of proceedings relating to arrears of tax and arrears of penalty and interest before any Appellate Authority or court and disposal of such application is pending, the dealer shall withdraw such appeal or other application before availing the benefit of waiver of arrears of penalty and interest under this scheme. The dealer shall file a declaration in support of withdrawal of appeal or other application in Annexure-II along with application for waiver of arrears of penalty and interest in Annexure-I appended to this order. Such application and declaration shall be filed for each year separately.
4. After the appeal or other application is withdrawn, the amount of arrears of penalty and interest shall be considered for waiver under the scheme. Any amount of penalty and interest paid at the time of filing appeal or other application shall be eligible for adjustment towards arrears of tax outstanding for the assessment year for which the benefit of waiver is claimed. However, the dealer shall not be eligible for refund of any amount that may become excess as a result of such adjustment under the scheme.
5. In respect of cases where any appeal or other application is not filed, the dealer shall not be eligible for refund of any penalty or interest already paid, either in full or partially, under this scheme.
6. The dealer shall not file an appeal or other application before any appellate authority or court or shall not seek rectification of orders/proceedings, after filing application for availing the benefits of this scheme or after availing the benefits of this scheme, for whatever reasons.
7. The dealer shall not be eligible to avail the benefits of this scheme in relation to an order giving rise to arrears of tax, penalty and interest where:
a. State shall filed an appeal before the Karnataka Appellate Tribunal or the Central Sales Tax Appellate Authority; or
b. State has filed an appeal or revision or any kind of application before the High Court or the Supreme Court; or
c. Any competent authority has initiated suo motu revision proceedings as on the date of this Government Order: or
d. Any rectification is made after 30-06-2019.
It is a very good opportunity to buy peace with the Department and regularize the earlier dues under various enactments.
Author Bio
Sir,
What about if it is 2018-19, I have paid the PT due, but the interest and penalty is not paid yet. Is it included in the karasamadhana scheme 2019? I tried it online but the latest year in the selection menu is only 2017-18. Kindly advise. Thanks. Godbless.