The Karnataka Karasamadhana Scheme was launched by the Karnataka government to expedite the collection of pre-GST arrears without resorting to litigation. The Karasamadhana Scheme, 2023, was announced through Order No. FD 07 CSL 2023, Bengaluru, dated July 18, 2023. Under this scheme, individuals who make full payment of tax arrears on or before December 31, 2023, are granted a 100% waiver of arrears, penalties, and interest. Let’s dive into the detailed information about the Karnataka Karasamadhana Scheme.
Highlights of Karnataka Karasamadhana Scheme:
- Name: Karnataka Karasamadhana Scheme
- Launched by: Government of Karnataka
- State: Karnataka
- Official Website: vat.kar.nic.in
Objective of Karnataka Karasamadhana Scheme:
In the present era of online convenience, various tasks can be accomplished from the comfort of our homes. However, some individuals and corporations misuse these privileges and fail to pay taxes and interest on time. This non-compliance hampers the nation’s economy. To address this issue, the Karnataka government initiated the Karnataka Karasamadhana Scheme. The primary objective is to resolve pre-GST legacy tax disputes and collect back taxes promptly without resorting to litigation.
Features of Karnataka Karasamadhana Scheme:
- The Scheme provides a 100% waiver of arrears, penalties, and interest for assessments, reassessments, rectifications, revisions, and appeal orders completed on or before October 31, 2023, under the KST and CST Acts.
- Certain cases related to KVAT Act and CST Act assessments, reassessments, rectifications, revisions, and appeal orders resolved or to be resolved by October 31, 2023, also qualify for 100% forgiveness of penalty and interest arrears, except under specific circumstances.
- Revision orders initiated before the government order date and required to be finished by October 31, 2023, under various Acts mentioned in the preamble, receive a 100% waiver of interest and penalty arrears (except in certain cases).
- Specific penalties under Sections 72 and 74(4) of the KVAT Act are eligible for remission under the scheme, provided that the confessed tax due is fully paid.
Benefits of Karnataka Karasamadhana Scheme:
- The government has extended the application deadlines, providing applicants with additional time to submit their applications.
- Applicants who previously missed the application window now have another opportunity to apply.
- Property dealers will receive a 100% refund of their money.
Conditions to Participate in the Program:
- To avail the full waiver of back penalties and interest, dealers, individuals, or proprietors must pay all back taxes on or before December 31, 2023.
- Dealers with penalty and interest arrears related to assessments, reassessments, rectifications, revisions, and appeal orders completed or to be completed by October 31, 2023, are eligible for a remission of tax arrears.
- Dealers must withdraw any appeals or applications filed with appellate authorities or courts concerning orders or proceedings involving tax, penalty, or interest arrears before taking advantage of the waiver plan.
- No additional appeals or applications before any appellate authority or court are permitted after applying for the scheme or availing its benefits.
Special Rules of the Program:
- Unregistered dealers can also be eligible for the program under specific conditions.
- Cases remanded by various appellate authorities and courts are also eligible for the program.
Eligibility Criteria for Karnataka Karasamadhana Scheme:
- Individuals or entities under section 10 A of the GST are not eligible for the plan.
- The applicant must print the payment receipt as proof.
- The applicant’s payment status must be updated, and the printed copy must be submitted to the tax department.
Required Documents for Karnataka Karasamadhana Scheme:
- Aadhar Card of the Applicant
- PAN Card of the Applicant
- Business Card
- Residential Certificate
- Mobile Number
- Email ID
Steps to Apply For Karnataka Karasamadhana Scheme
- Application Submission: Eligible dealers, individuals, or proprietors must submit a separate application electronically for each assessment year in the format prescribed by the Acts. The application deadline is December 31, 2023.
- Review and Discrepancies: The relevant Assessing Authority, Recovery Officer, or Prescribed Authority will review the applications and identify any discrepancies in the tax, penalty, and interest owed. Applicants will be informed of any discrepancies within 15 days of the application submission date.
- Payment: In case of discrepancies, the applicant can choose to pay the remaining debt within 15 days of receiving the information, on or before January 15, 2024, whichever comes first.
- Withdrawal of Appeals/Applications: Applicants must declare the withdrawal of any pending appeals or applications while seeking the waiver of penalty and interest arrears.
- Order of Waiver: Upon verification of eligibility, the Assessing Authority, Recovery Officer, or Prescribed Authority will issue an order waiving the remaining arrears of penalty and interest payable by the applicant for each assessment year or order.
The Karnataka Karasamadhana Scheme aims to facilitate taxpayers in resolving their tax disputes and expediting the collection of back taxes, encouraging timely compliance and minimizing lengthy litigation processes. The government also provides a simplified application process for dealers opting for the Scheme.
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