Interest applicable under TNVAT law

[yash arya]

Dear Sir,

Under Sec 42(3) of TNVAT Act, interest is payable on belated payment of tax assessed by AO. In the case of short payment of tax detected during vat audit, whether the auditor has to quantify the interest and report or else leave it to the discretion of  Dept. to recover the interest/penalty ? Kindly clarify with any case law in point/Dept. clarification.

-Shekar Rajagopal

AI Summary

Interest on Late Tax Payments Under Section 42(3) of TNVAT Act is Automatic; Assessees Must Pay Promptly. A query was raised regarding the applicability of interest under Section 42(3) of the TNVAT Act for belated tax payments. The issue concerned whether an auditor must quantify interest on short tax payments detected during a VAT audit or if it should be left to the Department's discretion. The response clarified that interest on short payments is automatic, and the assessee must pay it without waiting for a notice from the Department. Delays in payment also incur interest for the delayed period.