Non filing of VAT returns in Karnataka

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Jothi E

Entrepreneur

41 Points Posted on 22 June 2010

Hi,

Our advocate helped us obtain a VAT registration in Mar2006.
Due to some misunderstanding between our advocate and us, we ended up not filing VAT returns ever since inception.

Sales and purchases have been nil since inception.

We have two options to go about...
1. Surrender the VAT registration.
2. Start filing returns until we decide about its future.

Could anyone please advise on the above, directing us to the procedure and the penalties involved.

Thank you so much for your time and help

Replies (3)

RAJU

LEARNER

966 Points Posted on 22 June 2010

The Certificate may be surrendered only if you have stopped the business. There are penalty provisions for not filing the returns. Whether you file for surrender or start filing the returns now, the officer might inititate proceedings to levy penalty for not filing the returns. Since you have not effected any turnover, I suggest you to meet your jurisdictional officer and request to waive the penalty and allow you to either file the returns from now onwards or to cancel the registration if you have ceased to carry on the business.

Regards

Dharmaraju