06 June 2009
what is the interest & penalty on delay of deposit of DVAT? I know that Rs. 100/- per day payable on late filing of DVAT return but Is there any penalty on tax payment also?
07 June 2009
How is Interest Calculated? Interest is computed from the date of the default until the outstanding amount is paid. It is computed on a daily basis, applying the prescribed annual interest rate. Example
For the period ending 31st March, Gauri files her return on 28th April. She has a positive net tax liability of Rs 1000, which she pays on the 10th of July. Let us assume that the notified interest rate is 16%.
Gauri will have to pay interest for the period 29th April to 10th July (i.e. 73 days).
The amount of interest is calculated as :
1000*73*16% ___________ 365
Therefore, the amount payable as interest should be = Rs 32.
In addition, you will also be liable to a penalty at the rate of 1% of deficit tax per week or Rs 100 per week, whichever is higher
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