Lock in 2 Yrs of CAclubindia Pro Benefits & Save Rs 499. Subscribe Now!

Non filing MVAT Returns for new Registration

1419 views 1 replies

Rajesh Poddar

Chartered Accountant

321 Points Posted on 28 February 2011

Dear All,

A client of mine has recently taken VAT Registration under voluntary scheme by paying Rs. 25k deposit for new registration.

However he failed to file his VATreturn. No he has received a notice from the VAT department about 5k penalty.

Can he write a letter to the department to adjust this penalty against the said deposit. (It is assumed that there is no vat payable during the period the penalty is levied)

Please reply.

Thanks

Rajesh Poddar

Email : rajeshpoddarceo @ gmail.com

Replies (1)

U S Sharma

glidor@gmail.com

21068 Points Posted on 28 February 2011

if u allow the department to adjust the penalties from deposit, then they will issue notices for susequent periods also and digest the deposit in whole,

better to file the return of pending periods and appeal to office for reduction / weiver of late fees. keeping update of returns (even nil) is better option always.