Rajesh Poddar (Chartered Accountant) (321 Points)
28 February 2011Dear All,
A client of mine has recently taken VAT Registration under voluntary scheme by paying Rs. 25k deposit for new registration.
However he failed to file his VATreturn. No he has received a notice from the VAT department about 5k penalty.
Can he write a letter to the department to adjust this penalty against the said deposit. (It is assumed that there is no vat payable during the period the penalty is levied)
Please reply.
Thanks
Rajesh Poddar
Email : rajeshpoddarceo @ gmail.com
U S Sharma
(glidor@gmail.com)
(21063 Points)
Replied 28 February 2011
if u allow the department to adjust the penalties from deposit, then they will issue notices for susequent periods also and digest the deposit in whole,
better to file the return of pending periods and appeal to office for reduction / weiver of late fees. keeping update of returns (even nil) is better option always.
CAclubindia
