Rajasthan vat interest rate for late vat payment

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

23 May 2013 how many rajasthan vat interest rate for late vat payment?

please urgent!!!!!!!!!!!!

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

13 July 2013 INTEREST, PENALTIES, COMPOSITION AND PROSECUTION

55. Interest on failure to pay tax or other sum payable

(1) Where any person or a dealer commits a default in making the payment of any amount of-
(a) tax leviable or payable; or
(b) any amount of tax, fee, penalty or interest assessed or determined; or
(c) any other amount payable by him,

within the specified time under the provisions of this Act or the rules made or notifications issued thereunder, he shall be liable to pay interest on such amount at such rate, as may be notified by the State Government from time to time, for the period commencing from the day immediately succeeding the date specified for such payment and ending with the day on which such payment is made.

(2) Subject to the provisions of sub‑section (2) of section 66, interest under sub‑section (1) shall be calculated-
(a) at the time of assessment under any section or in continuation of such assessment; and
(b) on payment including the adjustment of a demand in full.

(3) The liability to pay interest under the provisions of this section shall also arise for a period which is less than a month.

(4) Where a dealer, registered under this Act, has wrongly availed input tax credit or has been granted an erroneous refund in any manner, such dealer shall be liable to pay interest, at such rate as may be notified by the State Government from time to time, on the amount of wrongly availed credit or the amount of such refund as the case may be and such interest shall be calculated from the first day of the month succeeding the month in which the credit was wrongly availed or the refund was erroneously granted till the day on which such payment is made.

pawan

pawan (Expert)
Follow

09 December 2014 Origional Vat return under Rajasthan vat filed nil within the prescribed period now revised return to be file with turnover for the period april 2014 to june 2014

is there any penalty for submitting revised return for same period ?

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

19 July 2025 Rajasthan VAT Interest on Late Payment
Applicability:
If any dealer fails to pay VAT or any other amount due (tax, fee, penalty, interest) within the specified due date, interest is payable.
Interest Rate:
The rate of interest is not fixed in the Act itself, but is notified by the State Government from time to time.
Calculation Period:
Interest is calculated from the day immediately after the due date until the payment date.
Interest on Wrongly Availed Input Tax Credit or Erroneous Refund:
Interest is also payable on wrongly availed ITC or erroneous refunds, calculated from the first day of the month following the month in which credit/refund was availed till payment date.
Short Periods Counted:
Interest is applicable even if the delay is for less than a month.
What is the current rate?
You will need to refer to the latest Rajasthan Government VAT notifications or circulars for the exact interest rate applicable currently (often around 18% p.a. in many states, but can vary).

What should you do?
Check the latest official notifications by the Rajasthan Commercial Taxes Department.
Contact the local VAT office or visit their website for updated rates.
Usually, the interest rate on late payment ranges between 15%-24% per annum depending on the state's notification.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now