01 January 2014
VAT return for the last month should be filed within 25 days. If a dealer required to file return u/s 29(1) or 29(2) of the JVAT Act' 2005, fails to do so and also fails to pay his tax liability then he will be liable to pay interest @ 1% per month of taxable amount for the default period. If tax liability is nil then no question about interest but penalty can be imposed Rs 20/- per day for default, subject to a maximum of Rs 5,000/- in a year. It is to be noted here that the prescribed authority may, after giving the dealer reasonable opportunity of being heard, direct him to pay in addition to the tax and the interest payable by him a penalty, @ 2% per month on the tax.
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