Compouding fees under kvat

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 November 2012 Dear Expert,

I have paid difference of tax and compounding fees when Vigilance had inspected our factory premises.

Now after 2 years, I have been asked to pay twice the difference tax amount as penalty and also interest by ACCT Audit.

I am an entreprenuer, Kindly let me know, what are remedies available.

CA. Hari Kishan

CA. Hari Kishan (Expert)
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26 November 2012 The authorities have the power to enhance the tax liability by two times. However you may request the assessing authorities on the ground of co-operation at the time of inspection and also on payment of compounding fee to reduce the additional tax to ONE Time..