The Karnataka Government vide Order No. FD 07 CSL 2023, Bengaluru, on July 18, 2023, incorporates the “Karasamadhana Scheme, 2023” to solve the pre-GST legacy tax disputes and expedite the collection of arrears without resorting to litigation.
The Scheme waives 100% of penalty and interest arrears for persons who complete full payment of tax arrears on or before December 31, 2023.
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Cases with no tax arrears but penalty and interest arrears relating to assessments, re-assessments, rectification, revision, or appeal orders that have already been completed and are scheduled to be finished on or before October 31, 2023, are qualified for a waiver.
The balance of the tax amount for claiming the advantages of the scheme should be needed to get paid within 15 days from the receipt date of the information or on or prior to 15th January 2024, whichever would be earlier for the cases in which the data would get obtained via the assessing authority, recovery officer or prescribed authority.
When any partial amount is due as arrears on the stated date then the petitioner would not be qualified for claiming the scheme advantages.
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The scheme has the objective to solve the tax issues appropriately and accumulate the arrears quickly, motivating the assessee to settle their dues and prevent extended litigation.
Accompanied by the announcement of the scheme, the Karnataka government furnishes the applications for the dealers who want to choose the scheme permitting them to avail of the advantages easily.
