THE KARNATAKA VALUE ADDED TAX ACT, 2003 NOTIFICATION
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Body ORDER NO. KSA.CR. 37/2018-19, DATED 30-04-2019

Sub: Comprehensive Karasamadhana Scheme, 2019 - Removal of Difficulties for the Officers of CTD, Trade and Industry in the implementation of the Scheme - reg

Ref: 1. Government Order No. FD 9 CSL 2019 dated 21-02-2019

2. Corrigendum vide No. FD 9 CSL 2019 dated 28-02-2019

Considering the request of the Trade and Industry for extension of Karasamadhana Scheme for all the arrears arising out of the enactments administered by the Commercial Taxes Department and which are subsumed in the Karnataka Goods and Services Tax Act, the Hon'ble Chief Minister of Karnataka had announced a Comprehensive Karasamadhana Scheme in his Budget Speech for the year 2019-20 made on 8th February 2019.

2. To implement the Budgetary announcement, "Comprehensive Karasamadhana Scheme, 2019" (hereinafter referred to as CKSS-2019) has been put in place vide Government Order under reference (1) above. The Scheme is very comprehensive in nature providing relief of interest and penalty for settlement of arrears in respect of the following enactments:-

a) The Karnataka Sales Tax Act, 1957 (hereinafter referred to as KST Act),

b) The Karnataka Value Added Tax Act, 2003 (hereinafter referred to as KVAT Act),

c) The Central Sales Tax Act, 1956 (hereinafter referred to as CST Act),

d) The Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (hereinafter referred to as KTPTC & E Act),

e) The Karnataka Tax on Luxuries Act, 1979 (hereinafter referred to as KLT Act),

f) The Karnataka Agricultural Income Tax Act, 1957 (hereinafter referred to as KAIT Act),

g) The Karnataka Entertainment Tax Act, 1958 (hereinafter referred to as KET Act) and

h) The Karnataka Tax on Entry of Goods Act, 1979 (hereinafter referred to as KTEG Act).

3. Corrigendum has been issued on 28-02-2009 vide reference (2) above so as to bring Sugar factories and Oil marketing companies (OMC) in the ambit of the above Scheme.

4. It has come to the notice of this office that certain difficulties are faced by the Officers of the Department and the members of Trade & Industry in the implementation of the said Scheme, which can be addressed by exercising power conferred under Clause (7) of the Government Order dated 21-02-2019. Hence the following order:

ORDER NO. KSA.CR. 37/2018-19, DATED 30-04-2019

In exercise of the powers conferred under Clause (7) of the Government Order No. No.FD 9 CSL 2019 dated 21-02-2019, for the removal of difficulties, the following clarifications are issued.

SI. No.	Issue	Clarification
1	Whether assessments / reassessments done under KVAT Act, in the case of Unregistered dealers (URDs) or relating to Pre-registration period, are eligible for relief under the CKSS-2019 as there would be no reference to TIN?	Yes. Assessments / re-assessments done in the case of URDs / in respect of Pre-registration periods under KVAT Act are eligible to avail the benefits available under the CKSS-2019 subject to fulfilment of other conditions. In the absence of TIN(Tax Payer's Identification Number) as is the case with URDs, the four digit number 2900 for URDs shall be entered. The above four digit number (2900) is applicable to all the URD cases and under all the Acts. However the Act under which the application is being filed shall be specifically mentioned so as to consider the case for waiver under the relevant Act.
2	Whether passing of assessment order under the KTPTC & E Act is mandatory to opt for CKSS-2019.	Yes. Because, passing of an assessment order in the case of an URD is mandatory under the provisions of section 7(3) of KTPTC & E Act. Moreover the date of assessment order / reassessment order / rectification order / penalty order / interest order has to be necessarily indicated in Annexure-IB of the Government order.
3	Whether passing of a separate penalty order under Section 72(1)(a) / 72(1)(b) / 74(4) is mandatory to opt for CKSS-2019?	If Penalty orders have not have been passed under Section 72(1)(a) / 72(1)(b) / 74(4) of KVAT Act, the date of Notice demanding any of these penalties is permitted to be entered in the Column "Date of Penalty order".
4	Whether cases remanded by the Appellate Authority / KAT/ SMR Authority / High Court / Supreme Court are eligible for CKSS-2019?	If the Assessment or Re-assessment or Rectification or any other proceedings pursuant to remanding of the case by any of those Authorities, as the case may be, have already been completed on or before 30-06-2019 such cases are eligible for availing the benefits under the CKSS-2019.
5	Whether a case covered by cross appeal filed by the State before the Karnataka Appellate Tribunal is eligible for CKSS-2019?	Unless the State withdraws the cross appeal filed before the Karnataka Appellate Tribunal, such a case will not be eligible for the benefits available under the CKSS-2019.
6	CKSS-2019 provides for 100% waiver of penalty and interest. Whether payment of basic tax can be delayed till the last date of making application under CKSS-2019?	CKSS-2019 does not provide for postponing payment of arrears of tax for an eligible dealer intending to avail the benefits under the Scheme. The dealer is required to discharge the arrears of tax within the time prescribed under the relevant Act though he is willing to opt for Karasamadhana Scheme at a later date.
7	Whether Penalty levied under Section 73(3-B) of KVAT Act is also covered under the Scheme as the nature of offence is the same as the one covered under Section 74(4)?	Section 74(4) empowers LVOs / VSOs to levy penalty of Rs.5,000/- for failure to submit copy of the Audited statement of accounts and further penalty of Rs.50/- per day for so long as failure to submit copy of the Audited statement of accounts continues. The Penalty levied under this Section is covered under CKSS-2019. Section 73 (3-B) empowers the Audit officer to levy penalty of Rs.50/- per day for failure to submit copy of the Audited statement of accounts. Though the authorities empowered to levy penalty under Section 74(4) and Section 73(3-B) are different, the nature of offences in both the cases is one and the same. Therefore, it is clarified that the penalty levied under Section 73(3-B) by the Audit Officer is also eligible for availing the benefits under the CKSS-2019.

(M.S. SRIKAR)

Commissioner of Commercial Taxes,

(Karnataka), Bengaluru