interest on vat tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2010 Under maharashtra vat act section 30(4) and in addition to circular 22T dated 06.08.09

my queston is 1)if party fails to pay vat on due date i.e. on 21april and it pays tax on 22 april does party is liable to pay 25% interest on vat tax amount

2) if party files return nill before due date and pay the tax at the finalization of income tax, does party liable to pay interest @25% on vat amount

CA Umesh Sharma

CA Umesh Sharma

(Expert)
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27 April 2010 Dear, Please note that the section is appliable in following circumstances only. refer the bare text given below. hence only after commencemet of Business Audit, Assessment,survey or Issue of Notice, etc the additional Interest is payable on differnt of tax.

In ur both cases no additional interest is payable being the below mention circumstances are not covered and its ur voluntary compliance of law not a forcefull. But normal interest under section 30(2) will be payable for late payment of tax.

30(4) If ,-
(a) after the commencement of,-
(i) audit of the business of the dealer in respect of any period, or
(ii) inspection of the accounts, registers and documents pertaining to
any period, kept at any place of business of the dealer, or
(iii) entry and search of any place of business or any other place
where the dealer has kept his accounts, registers, documents
pertaining to any period or stock of goods,
(B) in consequence of any intimation issued under sub-section (7) of
section 63,-
the dealer files one or more returns or,