WHAT IS THE INTERET PAYABLE ON LATE PAYMENT & INTEREST ON LATE RETURN FILING?
& WHAT ARE THE INTERESTS IN SECTION 30(2) & 30(4) OF MVAT ACT.?
PLEASE ANSWER ASAP........
SUNILKUMAR WADHWANI (Chartered Accountant) (320 Points)
20 October 2012WHAT IS THE INTERET PAYABLE ON LATE PAYMENT & INTEREST ON LATE RETURN FILING?
& WHAT ARE THE INTERESTS IN SECTION 30(2) & 30(4) OF MVAT ACT.?
PLEASE ANSWER ASAP........
CA Manish
(Job)
(5264 Points)
Replied 20 October 2012
Interest on late payment is 1.25% p.m.
Penalty for late filing is RS 5000/-.
CA Manish
(Job)
(5264 Points)
Replied 20 October 2012
Interest @ 25% on additional tax liability- Addition of Section 30(4):-
(a) Under the VAT system the emphasis is on self-compliance. The assessments are taken up only in exceptional cases. Business Audits are also conducted in very small numbers. Therefore, it becomes necessary that the dealer should comply voluntarily. On this background, it is essential to differentiate between the dealers filing correct returns and the dealer filing incorrect returns.
(b) Therefore, now it is provided that a dealer would be liable to pay an additional interest @ 25% on the additional tax payable, as per the return or the revised return and such interest shall be levied if a dealer files one or more return(s) (which was overdue) or revised return(s) under any of the following circumstances:-
(i) after the commencement of the business audit, or
(ii) Inspection of the accounts, registers and documents, kept at any place of business of the dealer, or
(iii) entry and search of any place of business etc., or
(iv) in consequence of the intimation sent under section 63(7).
CA Radhika Pai
(Chartered Accountant)
(776 Points)
Replied 11 December 2012
Interest to be paid is 1.25% on the late filing of MVAT return & 25% interest is to be paid on the additional tax liability which is computed other than late filing of return.
Please tell me whether my interpretation regarding this is correct ?
Thanks in advance
CAclubindia
