panalty against c form no issue

[Guest]

Dear expert

                   I want to know the penalty and interest against c form, if not issued.

regard

Vikram

[YAGAY and SUN]

Differenctial Tax and Interest at the rate of 15 percent p.a. in general.

[Guest]

in a case a party charged 150 percent penalty in this regard. Is it right or not ?

[YAGAY and SUN]

If VAT Department levy 150 percent penalty, then, party can charge it from you, otherwise not.

AI Summary

Penalty for non issuance of C Form: differential tax and interest apply; departmental penalty may be recoverable if formally levied. Failure to furnish a C form exposes the purchaser to assessment of the differential tax due together with interest at the statutory rate for delayed payment; the VAT authority may additionally impose a penalty which, if levied by the department, is recoverable from the supplier, but absent a formal departmental levy a purchaser cannot unilaterally charge an extra punitive percentage beyond assessed tax and interest.