14 February 2021
Dear Sir/Mam, I received a Notice from DVAT Department on non compliance of Assessment from FY 2013 - 14 onwards. In that, they are asking Tax and Interest on Non Submission of C Forms. I have all C forms, but due to some reason assessment couldn't be done. Please guide what to do and how to reply on that Notice.
09 July 2024
Receiving a notice from the DVAT Department regarding non-compliance of assessment can be concerning, especially if it involves tax and interest implications. Here’s a structured approach on how to proceed and respond to the notice:
### 1. Review the Notice Thoroughly - Carefully read through the notice to understand the specific allegations, demands (tax and interest), and the period for which assessment is pending (FY 2013-14 onwards). - Verify if the notice mentions non-submission of C Forms and the related tax liabilities.
### 2. Gather Necessary Documents - **C Forms**: Ensure you have all the C Forms that are being referenced in the notice. These forms are crucial for claiming concessional rates of tax on interstate transactions under the VAT regime. - **Assessment Records**: Gather any documentation related to your attempts to comply with the assessment process, including communication with the DVAT Department and any acknowledgments or correspondence.
### 3. Assess Your Compliance Status - Verify if the non-submission of C Forms was due to oversight or any specific reasons. Prepare an explanation if there were genuine reasons for the delay or non-submission.
### 4. Prepare Your Response - **Draft a Response**: Prepare a detailed response addressing each point mentioned in the notice. Include: - Acknowledgment of the notice and its contents. - Explanation regarding the non-submission of C Forms, if applicable. - Submission of the C Forms (if not already submitted) along with proof of submission. - Details of any correspondence or attempts made to comply with assessment requirements. - Any mitigating circumstances or reasons for the delay in compliance. - **Supporting Documents**: Attach copies of the C Forms, proof of submission, and any other relevant documents that support your response. - **Legal Advice**: If the tax and interest demands seem substantial or if you are uncertain about the legal implications, consider seeking advice from a tax consultant or legal expert specializing in VAT matters.
### 5. Submit Your Response - Submit your response to the DVAT Department within the stipulated timeframe mentioned in the notice. - Ensure that your response is clear, concise, and addresses all points raised in the notice to avoid further queries or delays.
### Follow Up - Follow up with the DVAT Department after submitting your response to confirm receipt and inquire about the next steps in the assessment process. - Keep copies of all communications, submissions, and responses for your records.
### Important Considerations: - **Timeliness**: Respond to the notice within the specified timeframe to avoid penalties or further legal actions. - **Accuracy**: Ensure all information provided in your response is accurate and supported by relevant documentation. - **Professional Assistance**: Consider consulting with a tax professional or legal advisor for complex cases or if you are unsure about how to proceed.
By systematically addressing the notice and providing comprehensive documentation, you can effectively respond to the DVAT Department and resolve the issues related to non-compliance of assessment.
CAclubindia
