Tuesday, 26 February 2019

Karnataka Karasamadhana Scheme 2019 | Tax settlement scheme


This is with reference to the Karasamadhana Scheme, 2019 announced by the Hon’ble Chief Minister of Karnataka in his Budget Speech on 08 February 2019.  A copy of the Comprehensive Karasamadhana Scheme, 2019 has been placed in the public domain today. As per the said Scheme, waiver of 100% of arrears of penalty and interest payable under the KVAT Act, 2003 and CST Act, 1956 relating to the assessments / re-assessments already completed and to be completed or before 30 June 2019 shall be provided. Apart from the above, assessments / reassessments under the Entry Tax, Professional Tax Act etc. shall also be eligible for the benefit under the scheme. For ease of reference, we are briefly providing herein below the procedure and timeline involved for applying under the Scheme:

      Full payment of arrears of taxes shall be required to be made on or before 30 September 2019 for waiver of 100% arrears of penalty and interest;
      All the appeals currently pending before the respective appellate forum is required to be withdrawn in order to apply for benefit under the scheme;
      An application in the prescribed format to be filed electronically within 30 September 2019.  This has to be followed by a hard copy submission with the concerned assessing authority;
      The concerned authority shall scrutinize the application and workout the actual arrears of tax, penalty and interest payable upto the date of filing of application and shall inform within 15 days from the date of filing the application about discrepancies, if any;
      The authority, based on his satisfaction about the eligibility of the scheme to the dealer, shall pass the order within 30 days from the date of making the payment.

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