Karnataka Tax on Entry of Goods Act, 1979 Chapter III - Bare Act |
| State | Karnataka Government |
| Year | 1979 |
| Section Title | Return, Assesment, Payment, Recovery and Collection of Taxes |
(1) Notwithstanding anything contained in section 7, every registered dealer 1 [and every dealer who is liable to get himself registered under this Act] shall every year submit a return to the assessing authority within such period and in such manner containing such particulars as may be prescribed.
(2) Before any 2 [x x x] dealer submits any return under sub-section (1) he shall in the prescribed manner pay in advance the full amount of tax payable by him on the basis of such return as reduced by any tax already paid under section 7 and shall furnish along with the return satisfactory proof of the payment of such tax. After the final assessment is made, the amount of tax so paid shall be deemed to have been paid towards the tax finally assessed.
(3) If the assessing authority is satisfied that any return submitted under sub-section (1) is correct and complete he shall assess the dealer on the basis thereof.
(4) If no return is submitted by the dealer under sub-section (1) before the period prescribed or if the return submitted by him appears to the assessing authority to be incorrect or incomplete, he shall assess the 2 [x x x] dealer to the best of his judgement recording the reasons for such assessment:
Provided that before taking action under this sub-section the registered dealer shall be given reasonable opportunity of proving the correctness and completeness of the return submitted by him.
(5) While making any assessment under sub-section (4), the assessing authority may also direct the dealer to pay in addition to the tax assessed a penalty not exceeding one and half times the amount of tax due that was not disclosed by the 2 [x x x] dealer in his return or in the case of failure to submit a return one and a half times the tax assessed, as the case may be.
3 [(6) No assessment under this section for any year shall be made after a period of 4 [three years] from the date on which return under section 5 for that year is submitted by a dealer:
5 [6 [Provided that the assessment proceeding relating to any year pending before the commencement of the Karnataka Taxation Laws (Amendment) Act, 1997 in respect of which a return under sub-section (1) has been submitted before such commencement, shall be completed within a period of 7 [three years] from such commencement:]
Provided further that nothing contained in this sub-section limiting the time within which the assessment may be made shall apply to an assessmant made on the assessee or any person in consequence of, or to give effect to any finding, direction or order made under section 13, 14, or 15 or any judgement or order made by any court;]
(7) In computing the period of limitation for assessment under this section,-
(a) the time during which the proceedings for assessment in question have been deferred on account of any stay order granted by any court or any other authority shall be excluded ;
(b) the time during which the assessment has been deferred in any case or classes of cases by the 8 [Joint Commissioner] for reasons to be recorded in writing shall be excluded:
9 [Proviso x x x] 10 [(8) Where an assessment under this section is not concluded within the time specified under sub-section (6), the 11 [turnover or value of taxable goods, as the case may be] declared by a dealer in his annual return shall be deemed to have been assessed for that year on the basis of the said return and the provisions of the Act relating to assessment of the 11 [such escaped turnover or purchase value of taxable goods as the case may be], payment and recovery, appeal and revision shall mutatis mutandis apply to such deemed assessment.]]
_______________________________
1. Inserted by Act 13 of 1982 w.e.f. 1-4-1982.
2. Omitted by Act 13 of 1982 w.e.f. 1-4-1982.
3. Sub-sections (6) to (8) inserted by Act 28 of 1985 w.e.f. 10-9-1985.
4. Substituted by Act 4 of 1999 w.e.f. 1-4-1997.
5. Inserted by Act 8 of 1989 w.e.f. 10-9-1985.
6. Substituted by Act 7 of 1997 w.e.f. 1.4.1997.
7. Substituted by Act 4 of 1999 as amended by item 21 of Second Schedule to Act 22 of 2000 w.e.f. 1.4.1997
8. Substituted by Act 15 of 1996 w.e.f. 5-9-1996.
9. Omitted by Act 8 of 1989 w.e.f. 10-9-1985.
10. Substituted by Act 8 of 1989 w.e.f. 9-9-1985.
11. Substituted by Act 18 of 1994 w.e.f. 1-4-1994.
1 [5A. Securitydeposit
(1) The assessing authority may, for good and sufficient reasons, demand from any dealer liable to pay tax under this Act, security for the proper payment of tax payable by him and on such demand such dealer shall furnish the same within seven days from the date of receipt of an order demanding security from the aforesaid authority.
(2) The amount of security payable under sub-section (1) for any year shall not exceed an amount equivalent to one-half of the tax anticipated to be payable by the dealer for that year :
Provided that the assessing authority shall have power to demand at any time additional security if such authority has reason to believe that the security fixed was too low.
(3) The security paid under sub-section (2), in any year shall be maintained in full until it is dispensed with by the assessing authority on being satisfied that the reason for its demand no longer exists or until the registration certificate is cancelled, whichever is earlier.]
_______________________________
1. Inserted by Act 13 of 1982 w.e.f. 1-4-1982.
1 [5B. Summaryassessment
(1) Notwithstanding anything contained in sub-sections (3) and (4) of section 5, in the case of a dealer for whom an 2 [x x x] Entry Tax Officer in respect of any year is the assessing authority, such assessing authority may at his discretion but subject to the provisions of sub-section (2), assess such dealer on the basis of the original return or the revised return, as the case may be, without requiring his presence or the production of books of accounts.
(2) For the purpose of sub-section (1), the dealer who is eligible for summary assessment under the provisions of this section may,-
(a) in respect of any completed year of his accounts, the assessments for which is pending on the date on which the Karnataka Tax on Entry of Goods Into Local Areas for Consumption, Use or Sale Therein (Amendment) Act, 1985 comes into force submit to his assessing authority,-
(i) the return relating to his turnover under sub-section (1) of section 5, if the same has not been submitted by him earlier; or
(ii) the revised return in the form prescribed under the said subsection, if the return had been submitted by him earlier, within a period of sixty days from the date on which this section comes into force ; and
(b) in respect of subsequent accounting years, submit to his assessing authority the return relating to his turnover under sub-section (1) of section 5:
Provided that the return or revised return to be submitted by a dealer under this sub-section shall be accompained by the enclosures specified in sub-section (3) :
Provided further that no penalty under sub-section (2) of section 7 shall be levied nor any prosecution under clauses (a) and (f) of sub-section (1) of section 21 be instituted or continued in respect of a dealer, who submits a revised return in respect of any completed year of his business in accordance with the requirements of this section.
(3) Every return or revised return to be submitted by a dealer shall be accompanied by such enclosures as may be prescribed.
(4) Summary assessments under this section shall not be made in respect of a dealer for any year if,-
(a) he has not been assessed under section 5 for a period not less than twelve months immediately preceding the commencement of the year under assessment and appeal, revision or other proceedings are pending disposal in respect of such assessment ;
(b) the assessment of the dealer has been completed under this section continuously for a period of three years immediately preceding the year under assessment;
(c) proceedings under sections 6 and 18 of this Act involving suppression of any turnover or tax liability have been taken up or concluded or are pending finalisation in respect of the dealer for the year ; and
(d) proceedings involving suppression of any turnover liable to tax in respect of him for any of the three years immediately preceding the year under assessment are concluded either under sub-section (4) of section 5 or section 6 of this Act resulting in liability to pay tax over and above the tax liability declared in the return of turnover filed under sub-section (1) of section 5 for any such year.
(5) Nothing in this section shall apply to assessments, which have been completed prior to the coming into force of the Karnataka Tax on Entry of Goods Into Local Areas for Consumption, Use or Sale Therein (Amendment) Act, 1985, even if the same has been set aside in appeal or revision and all such assessments or reassessments, as the case may be, shall be completed in accordance with the other provisions of this Act and the directions issued in appeal or revision, if any, in such cases.]
_______________________________
1. Inserted by Act 28 of 1985 w.e.f. 10-9-1985.
2. Omitted by Act 7 of 1997 w.e.f. 1-4-1997.
1 [5C. Cancellation of assesment in certaincases
(1) Where an assessee within one month from the service of a notice of demand makes an application and satisfies the assessing authority that he was prevented by sufficient cause from appearing as required under section 5, or that he did not receive the notice issued under that section or that he had not a reasonable opportunity of being heard, the assessing authority shall cancel the assessment and proceed to make a fresh assessment in accordance with the provisions of section 5:
Provided that no application under this sub-section shall be entertained by the assessing authority if tax admitted in the return is not paid.
(2) Nothing contained in sub-section (1) shall apply to an assessment which has been made the subject matter of an appeal under section 13.
(3) No appeal shall lie under section 13 against an order passed under this section.
(4) Every order passed under this section shall subject to the provisons of the sections 14, 15-A, 16 and 17, be final.]
_______________________________
1. Omitted by Act 14 of 1994 and inserted by Act 7 of 1997 w.e.f. 1-4-1997.
1 [(1) If the assessing authority has reasons to believe that the whole or any part of the turnover of a dealer or the value of taxable goods brought or caused to be brought into a local area by a dealer whether on his own account or on account of his principal or any other person or who has taken delivery or is entitled to take delivery of such goods on its entry into local area in respect of any period has escaped assessment to tax or has been under assessed or has been assessed at a rate lower than the rate at which it is assessable under this Act or any deduction or exemption have been wrongly allowed in respect thereof, the assessing authority may, notwithstanding the fact that whole or part of such escaped turnover or value of taxable goods, as the case may be, was already before the said authority at the time of original assessment or re-assessment, but subject to the provisions of sub-section (3) at any time within a period of eight years from the expiry of the year to which the tax relates, proceed to assess or re-assess to the best of its judgement the tax payable by a dealer in respect of such turnover or purchase value of such goods, as the case may be, after issuing a notice to the dealer and after making such enquiry as it may consider necessary.]
(2) In making as assessment under sub-section (1) the assessing authority may, if it is satisfied that the escape from assessment is due to willful non disclosure of the entry of such goods by the 2 [x x x] dealer direct him to pay in addition to the tax assessed under sub-section (1) a penalty not exceeding one and half times the tax so assessed:
Provided that no penalty under this sub-section shall be directed to be paid unless the dealer affected has had a reasonable opportunity of showing cause against such imposition.
(3) In computing the period of limitation for assessment under this section the time during which an assessment has been deferred on account of any stay order granted by any court or other authority or by reason of the fact that an appeal or other proceedings is pending, shall be excluded:
3 [Provided that nothing contained in this section limiting the time within which any action may be taken or any order, assessment, or re-assessment may be made, shall apply to an assessment or re-assessment made on the assessee or any person inconsequence of, or to give effect to, any finding, direction or order made under sections 13, 14, 15, 15-A or 16 or any judgement or order made by the Supreme Court, the High Court, or any other court.]
_______________________________
1. Substituted by Act 18 of 1994 w.e.f. 1-4-1994.
2. Omitted by Act 13 of 1982 w.e.f. 1-4-1982.
3. Inserted by Act 18 of 1994 w.e.f. 1-4-1994.
(1) Subject to such rules as may be prescribed every registered dealer 1 [and every dealer liable to get himself registered under this Act] shall send every month to the assessing authority a statement containing such particulars as may be prescribed and shall pay in advance the full amount or tax payable by him on the basis of the 2 [goods] brought by him during the preceding month into the local area 3 [within twenty days after the close of the preceding month to which such tax relates] and the amount so payable shall for the purpose of sub-section
(4) of section 8 be deemed to be an amount due under this Act from suchdealer:
4 [Provided that in the case of a dealer whose total turnover in any year under the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) is not more than seven lakh fifty thousand rupees, shall submit statements for each month in accordance with this sub-section once in a quarter and pay in advance the full amount of tax payable for every quarter within twenty days after the close of that quarter to which such tax relates.]
5 [(2) If default is committed in the payment of tax for any month or quarter as the case may be, beyond ten days, whether or not a statement as required under sub-section (1) is filed; or if the amount of tax paid is less than the amount of tax payable for any month or quarter as the case may be, the dealer defaulting payment of tax or making short payment of tax shall, in addition to the tax, pay interest calculated at the rate of two per cent per month from the date of such default or short payment to the date of payment of such tax.]
6 [(3)] If at the end of the year it is found that the amount of tax paid in advance by any 7 [x x x] dealer for any month or for the whole year in the aggregate was less than the tax payable for that month or the tax for the whole year as finally assessed, as the case may be, by more than fifteen percent the assessing authority may direct such dealer to pay in addition to the tax, by way of penalty, a sum 5 [calculated at the rate of two per cent per month of the tax paid in short from the date of expiry of thirty days after the close of the month or the quarter or the year as the case may be to which such tax relates.]
Provided that no penalty under this sub-section shall be imposed unless the dealer affected has had a reasonable opportunity or showing cause against such imposition.
1 [8 [(4)] If no such statement is submitted by a dealer under sub-section
(1) before the date prescribed or if the statement submitted by him appearsto the assessing authority to be incorrect or incomplete, the assessing authority may assess the dealer provisionally for that month to the best of his judgement, recording the reasons for such assessment, and proceed to demand and collect the tax on the basis of such assessment :
Provided that before taking action under this sub-section the dealer shall be given a reasonable opportunity of being heard.]
_______________________________
1. Inserted by Act 13 of 1982 w.e.f. 1-4-1982.
2. Substituted by Act 15 of 1992 w.e.f. 1-5-1992.
3. Inserted by Act 7 of 1997 w.e.f. 1-4-1997.
4. Inserted by Act 5 of 2000 w.e.f. 1-4-2000.
5. Substituted by Act 5 of 2000 w.e.f. 1-4-2000.
6. Renumbered by Act 7 of 1997 w.e.f. 1-4-1997.
7. Omitted by Act 13 of 1982 w.e.f. 1-4-1982.
8. Renumbered by Act 7 of 1997 w.e.f. 1-4-1997.
(1) The tax under this Act shall be paid in such manner and in such installments if any, 1 [and subject to such conditions and payment of such interest] and within such time, as may be prescribed.
(2) If default is made in making payment in accordance with subsection (1),-
(i) the whole of the amount outstanding on the date of default shall become immediately due and shall be a charge on the property of the person or persons liable to pay tax under this Act;
2 [(ii) the person or persons liable to pay the tax or any other amount due under this Act shall pay a penalty equal to two percent of the amount of tax or any other amount due remaining unpaid for each month after the expiry of the time specified under sub-section (1).]
Explanation.-For the purposes of clause (ii) the penalty payable for a part of a month shall be proportionately determined.
(3) Notwithstanding anything contained in sub-section (2), 3 [where the amount of penalty does not exceed rupees five lakh, the Commissioner and in any other case, the State Government] may subject to such conditions as may be prescribed remit the whole or any part of the penalty payable in respect of any period by any person or class of persons.
(4) Any tax assessed, or any other amount due under this Act from a 4 [x x x] dealer may without prejudice to any other mode of collection be recovered,-
(a) as if it were an arrear of land revenue, or
(b) by attachment and sale or by sale without attachment of any property of such dealer or any other person by the prescribed officer in accordance with such rules as may be prescribed;
(c) notwithstanding anything contained in the Code of Criminal Procedure, 1973 (Central Act 2 of 1974), on application to any Magistrate, by such Magistrate, as if it were a fine imposed by him:
Provided that where a 4 [x x x] dealer who has appealed or applied for revision of any order made under this Act and has complied with an order made by the appellate or the revising authority in regard to the payment of tax or other amount no proceedings for recovery under this sub-section shall be made or continued until the disposal of such appeal or application for revision.
_______________________________
1. Inserted by Act 28 of 1985 w.e.f. 10-9-1985.
2. Substituted by Act 5 of 2000 w.e.f. 1-4-2000.
3. Substituted by Act 7 of 1997 w.e.f. 1-4-1997.
4. Omitted by Act 13 of 1982 w.e.f. 1-4-1982.
1[8A. Power to withhold refund in certain cases
(1) Where an order giving rise to refund is the subject matter of an appeal or further proceeding or where any other proceeding under this Act is pending and the authority competent to grant such refund is of the opinion that the grant of refund is likely to adversely affect the revenue, such authority may, with the previous approval of the Commissioner withhold the refund till such time as the Commissioner may determine.
(2) Where a refund is withheld under sub-section (1) the State Government shall pay interest at the rate of2[twelve per cent] per annum on the amount of refund ultimately determined to be due to the person as a result of the appeal or further proceedings, for the period from the date immediately following the expiry of ninety days from the date of the order referred to, in sub-section (1) to the date of refund.]
_______________________________
1. Inserted by Act 18 of 1994 w.e.f. 1-4-1994.
2. Substituted by Act 7 of 1997 w.e.f. 1-4-1997.
(1) The assessing authority may, at any time or from time to time, by notice in writing (a copy of which shall be forwarded to the 1 [x x x] dealer from whom any tax assessed is due at his last address known to the assessing authority) require any person from whom money is due to the 1 [x x x] dealer or any person who holds or may subsequently hold money for or on account of the 1 [x x x] dealer to pay to the assessing authority either forthwith upon the money becoming due or being held at or within the time specified in the notice (not being before the money becomes due or is held) so much of the money as is sufficient to pay the amount due by the 1 [x x x] dealer in respect of arrears of tax or penalty or the whole of the money when it is equal to or less than that amount.
(2) The assessing authority may, at any time or from time to time, amend or revoke any such notice or extend the time for making any payment in pursuance of the notice.
(3) Any person making any payment in compliance with a notice under this section shall be deemed to have made the payment under the authority of the 1 [x x x] dealer and the receipt of the assessing authority shall constitute a good and sufficient discharge of the liability of such person to the extent of the amount referred to in the receipt.
(4) Any person discharging any liability to the 1 [x x x] dealer after receipt of the notice referred to in this section shall be personally liable to the assessing authority to the extent of the liability discharged or to the extent of the liability of the 1 [x x x] dealer for the amount due under this Act, whichever is less.
(5) Where any person to whom a notice under this section is sent objects to it on the ground that the sum demanded or any part thereof is not due by him to the 1 [x x x] dealer or that he does not hold any money for or an account of the 1 [x x x] dealer, then nothing contained in this section shall be deemed to require such person to pay the sum demanded or any part thereof, to the assessing authority.
(6) Any amount which a person is required to pay to the assessing authority or for which he is personally liable to the assessing authority under this section shall, if it remains unpaid, be a charge on the properties of the said person and may be recovered as if it were an arrear of land revenue.
Explanation.--For the purposes of this section, the amount due to a 1 [x x x] dealer or money held for or an account of a 2 [x x x] dealer shall be computed after taking into account such claims, if any, as may have fallen due for payment by such 2 [x x x] dealer to such person and as may be lawfully subsisting.
___________________
1. Omitted by Act 13 of 1982 w.e.f. 1-4-1982.
2. Omitted by Act 13 of 1982 w.e.f. 1-4-1982.
1[9A. x x x]
____________________
1 . Omitted by Act 5 of 2000 w.e.f. 1-4-2000.
(1) Where any firm is liable to pay any tax or other amount under this Act, the firm and each of the partners of the firm shall be jointly and severally liable for such payment.
(2) Where a partner of a firm liable to pay any tax or other amount under this Act retires, he shall, notwithstanding any contract to the contrary, be liable to pay the tax, or other amount remaining unpaid at the time of his retirement and any tax, or other amount due upto the date of retirement, through unassessed.
1 [10A. Assessment of legalrepresentative
Where a dealer dies, his executor, administrator or other legal representative shall be deemed to be the dealer for the purposes of this Act and the provisons of this Act shall apply to him in respect of the business of the said deceased dealer:
Provided that, in respect of any tax, penalty or fee assessed as payable by any such dealer or any tax, penalty or fee which would have been payable by him under this Act if he had not died, the executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hands.]
_______________________________
1. Inserted by Act 7 of 1997w.e.f. 1-4-1997.
(1) When the ownership of the business of a1[x x x] dealer liable to pay any tax or penalty, or any other amount under the provisions of this Act, is transferred, the transferror and the transferee shall jointly and severally be liable to pay any tax or penalty or any other amount payable but remaining unpaid at the time of transfer, and for the purpose of recovery from the transferee, such transfree shall be deemed to be the1[x x x] dealer liable to pay the tax or penalty or other amount under this Act.
(2) When a firm liable to pay the tax, or penalty is dissolved the assessment of the tax and imposition of penalty shall be made as if no dissolution of the firm had taken place, and every person who was at the time of dissolution a partner of the firm and the legal representative of any such person who is deceased, shall be jointly and severally liable to pay the tax or penalty assessed or imposed.
(3) When an undivided Hindu family or Aliyasanthana family liable to pay the tax or penalty is partitioned the assessment of the tax and the imposition of penalty shall be made as if no partition of the family had taken place and every person who was a member of the family before the partition shall be jointly and severally liable to pay the tax or penalty assessed or imposed.
(4) Where a1[x x x] dealer dies, his executor, administrator or other legal representative shall be deemed to be the1[x x x] dealer for the purposes of this Act and the provisions of this Act shall apply to him in respect of the business of the said deceased1[x x x] dealer, provided that, in respect of any tax or penalty assessed as payable by any such dealer or any tax or penalty which would have been payable by him under this Act if he had not died, the executor, administrator or other legal representative shall be liable only to the extent of the assets of the deceased in his hands.
_______________________________
1. Omitted by Act 13 of 1982 w.e.f. 1-4-1982.
1 [11A. Power of State Government to exempt or reducetax
2 [(1)] The State Government may, if in its opinion it is necessary in public interest so to do, by notification and subject to such restrictions and conditions and for such period as may be specified in the notification, exempt or reduce 3 [either prospectively or retrospectivelty] the tax payable under this Act,-
(i) by any specified class of persons or class of dealers or in respect of any goods or class of goods ; or
(ii) on entry of all or any goods or class of goods into any specified local area.]
2 [(2) The State Government may, by notification cancel or vary any notification issued under sub-section (1).
(3) Where any restriction or condition specified under sub-section (1) is contravened or is not observed by a dealer or a declaration furnished under the said sub-section is found to be wrong, then such dealer shall be liable to pay by way of penalty an amount equal to twice the difference between the tax payable at the rates specified by or under the Act and the tax paid at the rates specified under the notification on the value of such goods in respect of which such contravention or non-observance has taken place or a wrong declaration is furnished:
Provided that before taking action under the sub-section the dealer shall be given a reasonable opportunity of being heard.]
_______________________________
1. Substituted by Act 15 of 1992 w.e.f. 1-5-1992.
2. Section 11A renumbered and sub-section (2) inserted by Act 18 of 1994 w.e.f. 1-4-1994.
3. Inserted by Act 4 of 1999 w.e.f. 1-4-1999.