about sales tax

[siva reddy annapa reddy]

if filling is late in sales tax what is the penality

[YAGAY and SUN]

Dear Siva,

Provisions pertaining to non filing of return or late filing of return are governed by Section 50 the APVAT Act read with Rule 23 of the APVAT Rules. According of Section 50 of the APVAT Act:-

Section 50.

(1) Any VAT dealer, who fails to file a return where no tax is due, by the end of the month in which it was due, shall be liable to pay a penalty of ₹ 2,500/-(Rupees two thousand five hundred only)

(2) Any dealer registered under sub-section (7) of Section 17 who fails to file a return where no tax is due shall be liable to pay a penalty of ₹ 500/-. (Rupees five hundred only).

(3) Where a dealer files a return, after the last day of the month in which it is due, he shall be liable to pay a penalty of fifteen percent of the tax due:

Provided that before levying penalty under this Section the authority prescribed shall give the dealer a reasonable opportunity of being heard.

Regards,

Team YAGAY and SUN

(Management and Indirect Tax Consultants)

AI Summary

Late sales tax return penalty: fixed or percentage-based sanctions apply, with requirement to afford dealer an opportunity to be heard.
Section 50 of the APVAT Act prescribes fixed monetary penalties for failure to file returns when no tax is due, reduced fixed penalties for dealers under the composition provision, and a percentage-based penalty where returns are filed late with tax due; the authority must give the dealer a reasonable opportunity of being heard before imposing penalty.