State Act

THE KARNATAKA SALES TAX ACT, 1957

1[19-C. Power of Government to notify 2[exemption of tax or]2 deferred payment of tax for new industries.- (1) The Government may, in such circumstances and subject to such conditions as may be prescribed, by notification defer payment by any new industrial unit of the whole or any part of the tax payable in respect of any period 2[or exempt the whole or any part of the tax payable by a new industrial unit in respect of any period.]2 1[Provided that notwithstanding anything contained in this Act or in the rules made thereunder but subject to such conditions as the State Government may, by general or special order specify, where a dealer to whom incentives by way of deferment offered by the State Government in its orders issued from time to time has been granted by virtue of eligibility certificate and where liability equal to the amount of any such tax payable by such dealer has been created as loan by the Department of Industries and Commerce. Government of Karnataka, then such tax shall be deemed, in public interest, to have been paid.]1 (2) Notwithstanding anything contained in this Act, the deferred payment of tax under sub-section (1) shall not attract penalty under clause (ii) of sub-section (2) of section 13, provided the conditions laid down for payment of the tax deferred are satisfied.]1 1[Explanation.— For the purpose of this section, `New Industrial unit' 2[shall not include a new industrial unit which uses trade mark or the brand name of any product of an existing industrial unit, but includes]2,— (i) an industrial unit undertaking investment in expansion, diversification or modernisation; (ii) an Oil Company marketing products manufactured in the State by another Oil Company, the latter being a new industrial unit.]1