(First Published in the Karnataka Gazette Extraordinary on the Eighteenth day of March, 2009)

EXTRACT OF THE KARNATAKA TAXATION LAWS (AMENDMENT) ACT, 2009

(Received the assent of the Governor on sixteenth day of March, 2009)

KARNATAKA ACT NO. 7 OF 2009

An Act further to amend certain taxation laws in force in the State of Karnataka.

Whereas it is expedient further to amend certain taxation laws for the purposes hereinafter appearing.

Be it enacted by the Karnataka State Legislature in the Sixtieth year of the Republic of India, as follows-

1. Short title and commencement:

(1) This Act may be called the Karnataka taxation Laws (Amendment) Act, 2009.

(2) It shall come into force with effect from the First day of April, 2009.

4. Amendment of Act 35 of 1976:-

In the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976).

(1) in section 5, after sub-section (4), the following shall be inserted, namely:-

"(5) Where an employer or a person liable for registration or enrolment has failed to apply for such registration or enrolment within the time specified, the assessing authority shall, after giving him a reasonable opportunity of being heard, impose a penalty of one thousand rupees in the case of an employer and five hundred rupees in the case of any other person".;

(2) in section 6-A, after sub-section (3), the following shall be inserted, namely:-

"[4] Where an employer has failed to furnish a statement in the prescribed form or failed to pay the tax due on any statement furnished as required under the Act, the assessing authority shall, after giving him a reasonable opportunity of being heard, impose a penalty of two hundred and fifty rupees":

(3) in section 7,-

(a) for sub-section (1), the following shall be substituted, namely:-

"[1] Notwithstanding anything contained in sub-section (2) as it existed prior to commencement of the Karnataka Taxation Laws (Amendment) Act, 2009, every employer shall be deemed to have been assessed to tax based on the return filed by him under section 6 for any year commencing from the first day of April, 2008, except in cases where the Commissioner may notify the employer of any requirement of production of accounts before the assessing authority in support of a return filed for any year and such authority shall proceed to assess such dealer,-

(a) on the basis of the return filed where he is satisfied that the return filed is correct and complete or

(b) to the best of its judgment, where the return filed appears to be incorrect or incomplete, after giving the employer an opportunity of showing cause against such assessment in writing":-

(b) for sub-section (2), the following shall be substituted, namely:-

"(2) Notwithstanding anything contained in this section as it existed prior to commencement of the Karnataka Taxation Laws (Amendment) Act, 2009, the Government may notify, subject to such conditions as may be specified, that assessment of any specified class of employers for any year shall be deemed to have been made on the basis of the return submitted under sub-section (1) without requiring the presence of the employer or production of accounts and other documents by the employer":

(4) in section 21, after the words "Any authority" the words "or any officer authorised by the Commissioner either generally or specifically" shall be inserted'

(5) in section 26, in sub-section (1), after the words "assessing authority" the words "or the officer authorised under section 21" shall be inserted'

(6) in the Schedule, in serial number 1, in column (2),-

(a) the entries relating to Item (b) and the corresponding entries in column (3) shall be omitted'

(b) the entries relating to Item (c) and the corresponding entries in column (3) shall be omitted'