Karnataka Karasamadhana Scheme 2023:How to Apply, Notification, Last Date

Karnataka Karasamadhana Scheme 2023:How to Apply, Notification, Last Date

Karnataka Karasamadhana Scheme 2023,ಕರ್ನಾಟಕ ಕರಸಮಾಧಾನ ಯೋಜನೆ 2023, Karnataka Govt, Scheme, Benefits, Objective,Eligibility, Documents, List, Official Website,How to apply, Steps to apply

Karnataka Karasamadhana Scheme:

The Karnataka government introduced the Karnataka Karasamadhana Scheme with the aim of expeditHow ing the recovery of pre-GST arrears through non-litigation means. This initiative, known as the Karasamadhana Scheme 2023, was officially declared by the state government in Order No. FD 07 CSL 2023, Bengaluru, on July 18, 2023. Under this scheme, individuals who fully settle their tax arrears on or before December 31, 2023, will be eligible for complete waiver of penalties and interest on the arrears. For more detailed information about the Karnataka Karasamadhana Scheme, please continue reading below.

Karnataka Karasamadhana Scheme:

The Karnataka government established the Karasamadhana Scheme, 2023, through Order No. FD 07 CSL 2023, Bengaluru, dated July 18, 2023. The primary objective of this scheme is to efficiently recover outstanding taxes that were due before the implementation of the GST, resolving tax-related issues without resorting to legal proceedings. Individuals who fully settle their tax arrears on or before December 31, 2023, will receive a complete waiver of the penalty and interest that would typically be levied. Additionally, cases involving assessments, reassessments, rectification, revision, or appeal orders that have been concluded or are scheduled to be completed by October 31, 2023, but have no arrears of tax, yet possess arrears of penalty and interest, are also eligible for the waiver.

Karnataka Karasamadhana Scheme Details in Highlights

To avail the benefits of the Scheme, taxpayers must pay the remaining tax amount within fifteen days from the date of receiving information from the Assessing authority, Recovery Officer, or Prescribed Authority, or on or before January 15, 2024, whichever comes earlier. It is essential to clear the entire payment by the designated date; otherwise, the applicant will lose eligibility for the Scheme’s benefits.The main objective of the Scheme is to encourage prompt payment of debts by taxpayers and avoid prolonged legal disputes. It aims to efficiently resolve tax-related conflicts and expedite the collection of outstanding dues. To facilitate easy participation, the Karnataka Government has also provided a simple application process for dealers who wish to opt for the Scheme and avail its benefits.

Objective of the Karnataka Karasamadhana Scheme:

The aim of the Karnataka Karasamadhana Scheme is to expedite the collection of pre-GST arrears without resorting to litigation. It encourages taxpayers to settle their outstanding tax dues promptly and offers them a waiver of 100% of penalties and interest if they fully pay their arrears on or before December 31, 2023. The Scheme seeks to provide a fair and efficient resolution to tax-related issues and facilitates the speedy recovery of unpaid taxes.

Features of the Karnataka Karasamadhana Scheme:

The Karnataka Karasamadhana Scheme encompasses the following key features:

1. 100% Waiver for Pre-GST Arrears: The scheme grants a complete waiver of arrears of penalty and interest for assessments, reassessments, rectifications, revisions, and appeal orders that have been already conducted or will be finalized on or before October 31, 2023, under the KST regime, KST Act, and CST Act.
2. Forgiveness for KVAT Act and CST Act Cases: Eligible cases falling under the KVAT Act and CST Act, involving assessments, reassessments, rectifications, revisions, and appeal orders, that have been resolved or will be resolved by October 31, 2023, are eligible for a 100% forgiveness of penalty and interest arrears, except under specific circumstances.
3. Waiver for Pending Revision Orders: Revision orders that were initiated or completed before the government order’s date and are required to be concluded by October 31, 2023, under all the Acts mentioned in the scheme, will be granted a 100% waiver of arrears of interest and penalty, except in certain cases.
4. Remission for Specific Penalties: The penalties specified in Sections 72 (related to returns and assessments) and 74(4) (pertaining to the failure to submit the audited statement of accounts in FORM VAT 240) of the KVAT Act are subject to remission under the scheme, provided that the confessed tax due is fully paid.

The Karnataka Karasamadhana Scheme aims to facilitate the resolution of tax issues, promote timely settlement of tax arrears, and streamline the recovery process for the benefit of both taxpayers and the state government.

Benefits of Karnataka Karasamadhana Scheme

Some of the key benefits of the Karnataka Karasamadhana Scheme are as follows:

• The application deadlines for the program have been further extended by the government.
• People whose applications were left will have another opportunity to submit them.
• The state government will give all property dealers 100% of their money.

Special Rules of the Karnataka Karasamadhana Scheme, 2023:

The Karnataka Karasamadhana Scheme, 2023 includes the following provisions:

1. Unregistered Dealers: The program allows assessments, reassessments, rectifications, or other processes involving unregistered dealers to be eligible under specific conditions. In cases where there is no RC Number, Tax Payer’s Identification Number (TIN), or Enrolment Number, the relevant Annexures should use the number “2900” to fulfill the requirements.
2. Remanded Cases: The benefits of the scheme are applicable to assessments, reassessments, rectifications, or other proceedings that have been the result of a case being remanded by the First Appellate Authority, Karnataka Appellate Tribunal, Revisional Authority, High Court, or Supreme Court.

The incorporation of these special rules aims to extend the scope of the Karnataka Karasamadhana Scheme, providing relief and opportunities for resolution to a broader range of taxpayers and cases.

Eligibility Criteria for Karnataka Karasamadhana Scheme –

The applicants applying for Karnataka Karasamadhana Scheme must fulfill the following eligibility criteria:

• Any personality type shall not be regarded as eligible for the plan under section 10 A of the GST.
• You must print off the payment condition after you’ve completed it so you have proof.
• The applicant’s payment status must be required.
• The printed copy must be delivered to the tax department.

Required Documents for Karnataka Karasamadhana Scheme –

Some of the important documents required for Karnataka Karasamadhana Scheme are as follows:

• Business Card
• Residential Certificate
• Mobile Number
• Email ID
• Aadhar Card
• Pan Card

Steps to Apply For Karnataka Karasamadhana Scheme

The user needs to follow the below-given steps to apply for Karnataka Karasamadhana Scheme

• Application Submission: For each assessment year, dealers, individuals, or proprietors who choose to participate in this program must electronically submit a separate application using the format required by the applicable Acts. The deadline for applications is December 31, 2023.
• Review and Discrepancies: The relevant Assessing Authority, Recovery Officer, or Prescribed Authority will review the applications and check the amount of tax, penalty, and interest owed back to the filing date. Within 15 days of the application submission date, the applicant will be informed of any discrepancies that were discovered.
• Payment: If errors are found, the applicant may choose to pay the remaining debt within 15 days of receiving the information, on or before January 15th, 2024, or both, whichever comes first.
• Withdrawal of Appeals/Applications: When requesting the waiver of penalty and interest arrears, applicants must also provide a declaration in favor of the withdrawal of any pending appeals or applications.
• Order of Waiver: The Assessing Authority, Recovery Officer, or Prescribed Authority will issue an order waiving the remaining amount of arrears of penalty and interest payable by the applicant under the applicable Act for each assessment year or order once they are satisfied that the applicant is eligible for the scheme’s benefits.