Interest If VAT Amount not paid on Due date - AP VAT

[guna ch]

Dear Sir

Can any one advise me what is the interest rate if assessee not paid the VAT amount on due date and what are the due dates to pay the VAT amount , either before Submission of VAT Return or After Submission of VAT Return.

[YAGAY andSUN]

It is @15%, simple interest computed on a daily basis.

 

Under Section 51(1), if there is a failure to pay the tax due as per the return filed then penalty would be levied @ 10% of the tax amount.

AI Summary

Late VAT Payment: 15% Daily Simple Interest; 10% Penalty for Non-Payment per Section 51(1) A user inquired about the interest rate applicable if the VAT amount is not paid by the due date and the timing of the payment in relation to the VAT return submission. A respondent clarified that the interest rate is 15%, calculated as simple interest on a daily basis. Additionally, under Section 51(1), if the tax due is not paid as per the filed return, a penalty of 10% of the tax amount will be imposed.