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Late filing of vat return

yashsr (CA) (2285 Points)

29 October 2012

Hello,

A proprietor's Maharashtra VAT return was filed on 6 monthly basis until the last year. This year the Sales Tax Department changed it to Quarterly. However, since the proprietor was unaware of the same, he did not file any return until Mid October. Now when he tries to file his 6 monthly return, he gets an error that the frequency is not correct. Now what is the remedy? Can he file 2 quarter returns now?

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8 Replies

Ram Avtar Singh (Nagari Sultanpur U.P.Delhi) (14497 Points)
Replied 29 October 2012

Penalty u/s 29(8) of Maharashtra VAT Act.

The govt of maharashtra has passed the bill to amend the vat act. a new 
sub sec 8 of sec 29 has been introduced, which gives the commissioner 
the authority to directly impose a penalty order, for late filing of 
returns. there is no show cause, no hearing, a direct penalty order 
of rs 5000 is served for even a delay of a single day. if the taxes
 are paid in time, or if there is no tax liability or if there is a 
refund, but if and only if the return is filed late, this penalty is 
imposed and further more, it is non appealable to any court or any superior.
Is this constitutional? If challenged in court, will it testify under 
article 14, 19 and 226? and what would the possible judgement of the court would be?

Penaltlies under VAT Act

Section 29 of MVAT Act makes the provisions for ‘imposition of penalty in certain cases’. In this article it is intended to discuss the provision related to non-submission / late submission of return. Relevant section 29[8] reads as under:

MVAT sec 29 [8] – (8) Where, any person or dealer has failed without reasonable cause to file within the prescribed time, a return for any period as provided under section 20, the I-452 Sales Tax Review .. November, 2009 Article – Maharashtra VAT Act – Non submission of Returns ... 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Commissioner may, after giving the person or dealer a reasonable opportunity of being heard, by order in writing, impose on him, in addition to any tax payable by him, a sum of rupees two thousand by way of penalty. Such penalty shall be without prejudice to any other penalty, which may be imposed under this Act:

Provided that, if the return is filed before the initiation of the proceeding for levy of penalty, the penalty shall be levied at rupees one thousand and in any other case, the penalty shall be levied at rupees two thousand.

(In the above section 29, subsection (8), for the words ‘rupees two thousand’ the words ‘rupees ten thousand’ & for the words ‘rupees one thousand’ the words ‘rupees five thousand’ are substituted and new subsection (8) is as follows by the Maharashtra Act No. VIII of 2008 Dt. 31-3-2008)

(8) Where, any person or dealer has failed without reasonable cause to file within the prescribed time, a return for any period as provided under section 20, ‘ the Commissioner may, after giving the person or dealer a reasonable opportunity of being heard, by order in writing, impose on him, in addition to any tax payable by him, a sum of rupees ten thousand by way of penalty. Such penalty shall be without prejudice to any other penalty, which may be imposed under this Act:

Provided that, if the return is filed before the initiation of the proceeding for levy of penalty, the penalty shall be levied at rupees five thousand and in any other case, the penalty shall be levied at rupees ten thousand.

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yashsr (CA) (2285 Points)
Replied 29 October 2012

Thanks, what does this tell then? Will I have to pay late fee on my first quarter sales tax return?

Harshal Fifadra (Chartered Accountant) (1489 Points)
Replied 30 October 2012

yes the dealer will be required to file the late fees as per MVAT latest notification ......

CA Gaurav Sharda (Free Lancing and Studying) (35 Points)
Replied 08 November 2012

Dear Sir,

can u help me with the following doubt...

what is M - VAT amount is payable... and file the return showing the amount as payable..
do i still need to pay the Rs 5000/- penalty... coz the sections mentions that penalty is payable for Late filing of return....

Raja (Accountant) (43 Points)
Replied 14 November 2012

I have to file Return for the Period October 2011 to March 2012. When I File return error comes that return filing is after due date late fee should be entered.

what is the Amount of Late Fee ?

Please help