WBVAT & WBCST

Originally posted by : PARTHA PRATIM MUKHERJEE
	What is the rate of Interest & Penalty for late payment of tax and late submission of wbvat return ?

- interest -12% per annum ( 1% per month or part thereof) sec 33 of wbvat act

- Penalty

Rule 40 – Clause (c) of rule 40 is fully reconstructed and it is divided in two

parts, one is effective for the period from 1.4.07 to 31.3.08 and next is

operative from 1.4.08 onwards. In the first part, calculation of late fee is

linked with 50%of net tax payable in each quarter or Rs. 2000/- whichever is

lower. In the second part, calculation of late fee is totally delinked with tax

payment in each quarter. It has been provided that whatever may be the tax

amount, late fee is payable at Rs. 2000/- for the 1

month and @ Rs. 500/-

per month from the second month onwards. Accordingly, late fee of Rs.

2000/- and @ Rs. 500/- per month is payable from August, 2008 and

September, 2008 onwards respectively for the quarterly return of the period

ending on 30.06.08.

Two provisos are added to rule 40 which are made operative w.e.f.

1.4.07. According to 1

proviso, when quarterly returns are submitted

without making full payment of tax and interest, late fee is payable upto the

date of final payment or the date of provisional assessment u/s. 45 or the

date of general assessment u/s. 46 or u/s. 48. As per second proviso, when

quarterly returns are not submitted, late fee is payable upto the date of

provisional assessment, u/s. 45 or the date of general assessment u/s. 46 or

u/s. 48.