manjula (Articles Asst) (641 Points)
26 June 2008Hi
we have filed VAT retu of RS:45k late by 5 days the the officer of Tax Dept has given a notice to pay 110% fine with interest in bangalore
can any one help me what can i do for this , in notice they have given that i have to attend the case within 7days if not 110% fine so please help me what ot spek
CA. C V SURYAM
(Practising Chartered Accountant)
(865 Points)
Replied 26 June 2008
Hi Ms. Manjula,
1) The notice should be under Form VAT 110 u/r 40.
2) U/r 39(2) failure to file return before the due date (before end 20 days from end of tax period) will attract penalty and interest.
3) U/s 72 penalty will be Rs.200 p/d plus an amount not less than 10% of tax due as per return but not exceeding 50% thereof.
4) U/s 36 rate of interest is 2%.
Hence, the notice by levying 110% penalty (in your language fine) is not correct. For interest verify the above with notice.
Bi
CAclubindia
