TIME LIMIT FOR ISSUE OF NOTICE U/S 29 OF UTTRAKHAND VAT

[Guest]

Dear sir ,

what is the time limit of issuance of notice under sec 29 of uttrakhand vat ,if notice is regarding financial year 2009-10?

[YAGAY andSUN]

Dear Prathit,

​Normally it is three years in VAT Laws. However, either through amendment in law or through a notification, this limitation period can be extended.

THE UTTARAKHAND VALUE ADDED TAX ACT, 2005

Sec. 29: Assessment of Escaped Turnover:

(1) Where after a dealer is assessed under section 25 or section 26 for any year or part thereof, the assessing authority has reason to believe that the whole or any part of turnover of the dealer in respect of any tax period has- (a) escaped assessment; or (b) been under assessed; or (c) been assessed at a rate lower than the rate at which it is assessable; or (d) been wrongly allowed any exemption or deduction therefrom; or (e) been wrongly allowed any tax credit therein, the assessing authority shall, after recording the reasons in writing, serve a notice on the dealer and after giving the dealer a reasonable opportunity of being heard and making such enquiries as he considers necessary, he shall assess or reassess the turnover of the dealer and tax according to law and the provisions of this Act shall as far as may be, apply accordingly: Provided that the tax shall be charged at the rate at which it would have been charged had the turnover not escaped assessment or full assessment as the case may be. Explanation (1): Nothing in this sub-section shall be deemed to prevent the assessing authority from making an assessment to the best of its judgment. Explanation (2): For the purposes of this section and of section 30,"Assessing Authority" means the officer who passed the earlier assessment order, if any, and includes the officer having jurisdiction for the time being to assess the dealer. Explanation (3): Notwithstanding the issuance of notice under this subsection, where an order of assessment or reassessment is in existence from before the issuance of such notice it shall continue to be effective as such, until varied by an order of assessment or reassessment made under this section in pursuance of such notice. (2) Except as otherwise provided in section 28 or under this section, no order of assessment or reassessment shall be made under sub-section (1) after the expiry of three years form the end of the year in respect of which or part of which the tax is assessable. (3) Assessment or reassessment in respect of turnover escaped from assessment may be passed at any time within three years and nine months ending on 31st December after the expiry of assessment year for which assessment is to be made, provided that notice under this section has been served within a period of three years and six months ending on 30th September after the expiry of the assessment year for which assessment is to be made. (4) If the commissioner on his own or on the basis of reasons recorded by the assessing authority is satisfied that it is just and expedient so to do, he may authorise the assessing authority in that behalf, and then such assessment or reassessment may be made after the expiration of the period aforesaid but not after the expiration of six years form the end of such assessment year, notwithstanding that such assessment or reassessment may involve a change of opinion.

Regards,

YAGAY and SUN

(Management, Business & Indirect Tax Consultants)

AI Summary

Limitation for reassessment: default time limits apply with conditional extensions permitting later assessments under specified authority. Section 29 empowers the assessing authority to reassess turnover and tax where turnover has escaped assessment or been under assessed, after recording reasons, serving notice and affording a hearing; reassessed tax is charged at the rate that would have applied but assessment to the best of judgment remains permitted. Time limits apply: generally no reassessment after three years from year end, with provisions allowing reassessment within three years and nine months if notice served within three years and six months, and a Commissioner's power to extend up to six years where just and expedient.