Hi All,
I have just taken a Pvt Ltd name from some1, excise number in this company was taken in 2014 but due to no business activity till now the earlier onwer had not file even nil return of central excise..
my question is if I start using this number for my trading business purpose, will there be any chance of penalty for not filing nil return for last 3 years??? if yes what will be the amount ??
Penalty for Not Filing Nil Returns: Rule 12(6) Imposes 100 Daily Fine Up to 20,000 for Each Delayed Return An individual acquired a private limited company with an excise number obtained in 2014, but no business activity or nil return filing occurred. They inquired about potential penalties for not filing nil returns for three years. Experts clarified that under Rule 12(6) of the Central Excise Rules, 2002, a penalty of 100 per day, up to 20,000, applies for each delayed return. Liability depends on whether the new owner assumes previous liabilities. The penalty applies regardless of business activity, and returns are typically filed quarterly. The penalty amount can be deducted from the company's purchase price. (AI Summary)
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