Nil Return not File

[Asked by Guest]

Hi All,

I have just taken a Pvt Ltd name from some1, vat & Cst 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 Vat & cst..

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 ??

[Ganeshan Kalyani]

VAT is a State subject . the rule is different in different states. in most of the states the rule states that even if there is no transaction nil return is supposed to be filed . the normal penalty if there is no transaction and no return is filed is 5 thousand . but still you need to refer to particular state where you are going take over the busines.

[DR.MARIAPPAN GOVINDARAJAN]

Which State?

Maharashtra

[Ganeshan Kalyani]

Penalty of ₹ 5000/- per return is applicable for not filing the retun.

[DR.MARIAPPAN GOVINDARAJAN]

Shri Desai, whether you have got cleared on the explanation of Shri Ganeshan

is there possibility to pay the penalty in one show cause notice & only 20k as a total penalty ?

[Ganeshan Kalyani]

If there is no business then you may appeal to the assessing authority to drop the penalty demand .

yes there was no activity done from the date of taking the number till date

[KASTURI SETHI]

In Central Excise, it is monthly return. Last date 10 th of the following. Annual Return is also to be filed.

[DR.MARIAPPAN GOVINDARAJAN]

The filing of Annual Return in respect of Central Excise is dispensed with for this financial year.

[KASTURI SETHI]

Sir,

I remained out of touch for three months. Pl. let me know notification no. or circular no. whereby submission of Annual Return has been dispensed with for this year.

Thanks a lot.

AI Summary

Nil return filing obligation can trigger penalties for non filing; state rules and appeal options affect ongoing tax liability.
Nil return filing obligations apply to VAT/CST registrations even where there has been no business activity; many states require periodic filing of returns and non-filing of nil returns can attract a fixed penalty per return. The applicable sanction and procedural remedies depend on state law; a registered proprietor who inherited a registration with no transactions may appeal to the assessing authority to seek waiver or cancellation of penalty demands and should verify return frequency and local rules.