Urgent

Urgent

SENIOR ARTICLE ASSISTANT

53 Points Posted on 29 December 2010

hello friends..

i just want to know that if a person sells locallly and in invoice bills,

1) if he forgeted to show VAT Tax seprately

2) if he not charged VAT on bills

then what the penalties & interest will be levied to assessee

Replies (1)

Professional

136 Points Posted on 29 December 2010

Dear Gaurav,

The total sales price shall be deemed of inclusive of VAT .

e.g. Total Sales Rs.100 (VAT @ 12.5% is not shown separately)

Then Assessable Value = 100/1.125 = Rs.88.8889

VAT = 100/(1+T)*T = Rs.11.1111

The penalty and interest for non payment of VAT will be same as if the VAT has been charged separately and not paid to the Govt.

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