Hi,
A party has been asked to produce books of accounts under Karnataka Tax On Entry Of Goods Act, 1979 for the year 2006-07. During the course of assessment the party has been held for payment of additional amount of entry tax than what is paid along with monthly returns. Along with the tax, party is asked to pay interest @ 2% on tax payable from the year 2006-07. But as per my knowledge interest rate was 1.25% from 2006-07 to 2010-11. From 2011-12 interest rate revised to 2%. Kindly let know what is the correct rate of interest in the said case. Also let me know any references in this regard.
Regards,
Satya
CAclubindia
