Cst penalties

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 May 2013 Dear sir,
Please let me know what is the percentage of interest and penalties charged by the Sales Tax department, if we do not able collect the C forms.

Please reply back at the earleist.

CA. Hari Kishan

CA. Hari Kishan (Expert)
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28 May 2013 The assessing authorities are presently levying interest as per section 9(2-B) of the CST act. The percentage of interest is based on the local vat law of that state. However i am of the strong opinion that NO interest could be levied since the TAX DUE is determined pursuant to the assessment order passed. Hence the date of passing the order and issuing demand notice is the date when tax is due for payment and never before. Hence no interest shall be payable. refer. abhinav systech private limited. Karnataka Tribunal. and BHEL case. of Karnataka tribunal. Also refer. Jalpac India. Uttaranchal HC, Maruti wire industries. (SC). J K Synthetics case. COnstitution bench,