Non Filing of Return

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Achint (Querist)
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22 October 2009 What is the penalty for non-filing of DVAT Return for past 2 years? Can we adjust input credit of VAT available with the penalty amount?

CA SANJAY MUKHERJEE

CA SANJAY MUKHERJEE (Expert)
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26 October 2009 Section 86 [(9) If a person required to furnish a return under Chapter V of this Act
(a) fails to furnish any return by the due date; or
(b) fails to furnish with a return any other document that is required to be furnished with the return; or
(c) being required to revise a return already furnished, fails to furnish the revised return by the due date;
the person shall be liable to pay, by way of penalty, a sum of one hundred rupees per day from the day immediately following the due date until the failure is rectified:
PROVIDED that the amount of penalty payable under this sub-section shall not exceed ten thousand rupees.

I think input credit can't be adjusted against penalty.