MVAT interest u/s 30(4)

This query is : Resolved 

21 December 2009

reproduced S.30(4)
"Sec. 30 (4) If ,-
(a) after the commencement of,-
(i) audit of the business of the dealer in respect of any
period, or .....
.....the dealer shall be liable to pay by way of interest, a sum equal to 25 % of the additional tax payable as per the return or, as the case may be, revised return."

kindly tell, with source of info., if possible
1) if audit as mentioned above means MVAT audit only, or any other audit under companies act, IT Act, etc.

2) is 25% calculated straight forward without taking into account the period i.e return date to date of filing of revised return?

CA Deepak P. Agrawal (Expert)
30 December 2009

1) Audit here means Business audit or assessment carried out by the department and not the MVAT, IT audit etc. Sec 30 (4) will be not applicble in that case.

2) 25% is calculated on adhoc basis and it does not consider time frame. It is a sort of penalty rather than interest.


CA.CS.eather (Querist)
09 January 2010

thanks for the reply

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