Penalty for non-submission of Form 'C'

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sony10 (Querist)
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08 September 2008 Dear Sir,

Under Punjab Vat last date for submission of Form 'C' was 30.06.08 for 2006-2007 year. The forms received from clients were submitted in time alongwith the list of forms not received. But for those not received what is the penalty or interest apart from 6% balance C.S.T. to be paid?

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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19 September 2008 In case of non submission of C form, the sales will be taxed at (for FY 2006-07)at 10% or local rate whichever is higher. Accordingly, interest will be levied treating the entire tax was due in the tax period of sales.

Howevr, the ST can give you further time for submission of C forms.

sony10

sony10 (Querist)
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19 September 2008 So what is the rate of interest? And how it should be calculated?

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CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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24 September 2008 It differs from state to state.

Please refer your local tax laws.

For further clarification, please go through section 9(2A)of the CST Act, which reads as under;-

"All the 2[provisions relating to offences, interest and penalties]
(including provisions relating to penalties in lieu of prosecution for an offence or in addition to the penalties or punishment for an offence but excluding the provisions relating to matters provided for in section 10 and lOA) of the general sales tax law of each State shall, with necessary odifications, apply in relation to the assessment, re-assessment, collection and the enforcement of payment of any tax required to be collected under this Act in such State or in relation to any
process connected with such assessment, re-assessment, collection or enforcement of payment as if the tax under this Act were a tax under such sales tax law."

sony10

sony10 (Querist)
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24 September 2008 Thanks for your help Mr. Agarwalla.
For the same matter I contacted Sales Tax Dept. and they informed that interest @ 0.50% from the end of every quarter for which the form is not received till the date of depositing the tax + penalty/interest is to be calculated.