Bengaluru, May 22 (KNN) In the backdrop of GST being implemented from July 1, 2017, the Commercial Taxes Department of Karnataka has approved the Karasamadhana Scheme 2017  which aims to reduce arrears of tax and other amounts due.

This scheme has been formulated for waiver of penalty and interest under various Acts.

Hailing the scheme, Karnataka Small Scale Industries Association (KASSIA) President A Padmanabha said, “Any proposal to reduce tax burden will first and foremost benefit the MSME industrialist as he is the one who feels most burdened by a plethora of taxes.”

A quantum of 90 per cent of arrears and interest being waived is certainly generous and not a cosmetic gesture as has generally been the experience till now, KASSIA President added.

Under the Karasamadhana Scheme 2017, dealers would get waiver of 90 per cent of arrears of penalty and interest payable by a Dealer under the Karnataka Sales Tax Act 1957 (KST Act) and Central Sales Tax Act (CCST Act) relating to the years up to March 21, 2005.

The scheme also gives waiver of 90 per cent of arrears of penalty and interest payable by a Dealer under the Karnataka Value Added Tax Act 2003 relating to the assessment/ re-assessment orders passed under the provisions of tax periods relating to all the years commencing from 01/04/2005 upto 31/03/2016 and assessment/ reassessment orders passed under CST Act for the tax periods relating to all the years commencing from 01/04/2005 upto 31/03/2016.

The scheme also grants-waiver of 90 per cent of arrears of penalty and interest payable -by a dealer or person or proprietor, as the case may be, relating to the assessment or reassessment for all the years upto 31/03/2016 under the - Karnataka Tax on Entry of Goods Act, 1979 (hereinafter referred to as KTEG Act); Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (hereinafter referred to as KTPTC & E Act); Karnataka Tax on Luxuries Act, 1979 (hereinafter referred to as KTL Act); Karnataka Agricultural Income Tax Act, 1957 (hereinafter referred to as KAIT Act); and Karnataka Entertainments Tax Act, 1958 (hereinafter referred to as KET Act).

Meanwhile, under the scheme, grant of waiver of penalty and interest are subject to certain conditions and procedure.

The Dealer opting for the scheme will have to submit separate Application relating to each assessment/ reassessment order relating to the tax for the years commencing from April 1, 2005 up to March 31, 2016 electronically through the Karnataka Tax Department’s website on or before May 31, 2017. (KNN Bureau)