20 April 2008
We are regularly paying our VAT returns for the last 3yearswithut default. Last month due to some bank problems the cheque of Rs618000 was dishonoured by the bank. Now what is my liability to the authorities? is there scope for any reductions in the penaties considering our track record?
21 April 2008
VAT RETURN -PENALTY FOR LATE FILING AND DELAYED DEPOSIT OF VAT -WAS EARLIER NOT INSISTED BY COMMERCIAL TAX DEPT. BUT NOW A DAYS WHAT IS HAPPENING IS EVERY DAY THERE IS A REVIEW IN COM.TAX. DEPT. AT A.C. OR D.C. LEVEL AND PRESSURE FOR COLLECTING TARGETTED REVENUE IS BUILDING UP AND LATE FEES IN THE SHAPE OF INTEREST IS INVARIABLY COLLECTED. MOST OF THE TIMES THE DEMAND FOR INT .IS NOT EVEN ISSUED IN WRITING. BUT I BELIEVE THE CTO CONCERNED HAS A DISCRETIONARY POWER TO REDUCE THE AMOUNT OF INT.FOR LATE PAYMENT,THOUGH HE MAY NOT BE ABLE TO WAIVE THE SAME TOTALLY. YOU MAY GIVE A WRITTEN REPRESENTATION FOR WAIVER OF PENALTY/INTEREST IN VIEW OF GOOD TRACK OF PAST PAYMENTS. AND MR. GANESH, YOU ALSO KNOW THE WAYS OF THE WORLD.THAT WAY EVEN YOU MAY TOTALLY AVOID PENALTY. R.V.RAO R.V.RAO
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