Thursday, 9 August 2018

Karnataka Karasamadhan Scheme 2018 | Tax settlement scheme


We wish to update you on the Karasamadhan Scheme which has been introduced vide order No. FD 38 CSL 2018 dated August 04, 2018 as “CST Karasamadhana Scheme 2018” by the Karnataka government. Following are the key takeaways from the scheme:    



    The scheme grants waiver of 100% of arrears of penalty and interest payable under the CST Act, 1956  in relation to assessment and re-assessments completed on or before 30 June 2018 provided full payment of arrears of tax is made on or before 30 October 2018.
    The dealer shall withdraw the appeal filed before the Appellate Authority or Court or any application filed against the order or proceedings relating to arrears of tax, interest and penalty for which the disposal is still pending.
    Post withdrawal of the appeal or application as the case may be,  any amount of penalty and interest paid at the time of filing an appeal or application shall be eligible for adjustment towards arrears of tax outstanding for the assessment year for which benefit is claimed.
    The assessing authority shall scrutinize the application and calculate the actual arrears of tax, interest and penalty payable up to the date of filing the application.
    Any rectification of order made after 20 June 2018 shall not be eligible to avail the benefits of the scheme.
    In case no discrepancy is noticed the assessing authority shall pass the order in 15 days from date of receipt of application and served to the dealer in next 10 days .
    E-Application for waiver of arrears of penalty and interest shall be filed in Annexure I for each of the year separately.
    A declaration in support of withdrawal of appeal or other application shall be filed in Annexure II for each of the year separately.

Please note the above scheme is applicable only for orders passed under the CST Act and not for cases pending under the Karnataka VAT Act. Further any penalty levied u/s 10-A of CST Act shall not be waived under this scheme.

No comments:

Can GST Under RCM Not Charged and Paid from FY 2017-18 to October 2024 be Settled in FY 2024-25?

 In a recent and significant update to GST regulations, registered persons in India can now clear unpaid Reverse Charge Mechanism (RCM) liab...