State Act

THE KARNATAKA SALES TAX ACT, 1957

1[12-B. Payment of tax in advance.- 2[(1) Subject to such rules as may be prescribed, every dealer shall send every month 6[xxx]6 a statement containing such particulars as may be prescribed including the taxable turnover during the preceding month and shall pay in advance the full amount of 3[tax payable by him 4[under this Act within twenty days after the close of the preceding month to which such tax relates on the basis of the turnover particulars shown in the statement]4]3 and the amount so payable shall for the purposes of 5[x x x]5 section 13 be deemed to be an amount due under this Act from such dealer.]2 1[2[Provided that,— (i) in the case of a dealer where payment by way of composition under sub-section (1) of section 17 is accepted, the provisions of sub-section (1) shall not apply; and (ii) in the case of a dealer being a small scale industry registered with the Director of Industries and Commerce, Government of Karnataka, such dealer shall send such a statement in accordance with sub-section (1) but shall pay in advance the full amount of tax payable for every quarter within twenty days after the close of that quarter.]2 3[(iii) in the case of a dealer whose total turnover in any year is not more than seven lakh fifty thousand rupees shall submit statements for each month in accordance with sub-section (1) 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.]3 Provided further that the full amount of tax payable by a dealer in advance for the year as reduced by the amount of tax already paid under this section shall be paid within thirty days after the close of the year to which such tax relates.]1 1[Provided also that where the tax payable for any quarter by a small scale industrial undertaking is not paid within thirty days after the close of the quarter to which such tax relates, such undertaking shall be liable to pay tax thereafter as provided under this sub-section excluding the first proviso.]1 1[Provided also that nothing contained in this sub-section shall apply to a dealer who is registered under the Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004) and who is not a dealer in petrol, diesel, aviation turbine fuel, lottery tickets and sugarcane.]1 1[Provided also that the specified class of dealers as may be notified by the Commissioner shall submit the statement in the prescribed form, electronically through internet and also pay the tax payable on the basis of the statement, by electronic remittance through internet, in the manner specified in the said notification.] 1 1[(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 3[one and a quarter per cent]3 per month from the date of such default or short payment to the date of payment of such tax 2[or upto the date specified for payment of tax assessed under section 12, as the case may be.]2]1 1[2[(3)]2 If no such statement is submitted by a dealer under sub-section (1) before the date prescribed or if the statement submitted by him appears to the assessing authority to be incorrect or incomplete, the assessing authority may assess the dealer provisionally for that month to the best of his judgment, 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 1[(3A) When making assessment under sub-section (3), the assessing authority may also direct the dealer to pay in addition to tax assessed a penalty.- (a) not exceeding one and a half times but not less than one half of the amount of tax due on turnover that was not disclosed by the dealer in his statement; or (b) not exceeding one and half times the tax assessed in the case of failure to submit a statement.]1 1[2[(4)]2 If at the end of the year it is found that the amount of tax paid in advance by any dealer for any month or quarter or for the whole year in the aggregate was less than the tax payable for that month or quarter or the tax for the whole year as finally assessed, as the case may be, by more than fifteen per cent, the assessing authority may direct such dealer to pay, in addition to the tax, a penalty 3[which shall not be less than one half of the tax so paid in short, but not exceeding 4[xxx]4 the amount by which the tax so paid fall short]3 of the tax payable for the month or quarter or for the whole year as the case may be:]1 Provided that no penalty under this sub-section shall be imposed unless the dealer affected has had a reasonable opportunity of showing cause against such imposition.]1 1[Provided further that no penalty shall be levied under this sub-section after a period of eight years from the close of the year to which any tax paid in short relates.]1 1[Explanation.— For the purpose of this section "quarter" means the period of three months ending on 31st day of May, 31st day of August, 30th day of November and 28th day (or 29th day) of February.]1