Durga prasad 11 May 2017

Penalty and penal interest section rules for ap vat act

Local AP Commercial tax department has issue a notice for levy of Penalty @ 10% and Demand for Penalty interest on the delay of tax payment due. 1. How to approach for the above notices (a) we filed the return on in time of 20/1/17 and but payment was made on 2/2/17. They raised the notice VAT 203A penalty @ 10% on the tax due amount. What is the case for that and we payment was made with in 13 days. (b) Due to insufficient funds we paid the tax due on late . they demanded a penal interest notice under VAT 205 . (c) What is the exact the cases occurred for the 2 notices. Kindly forward the APVAT 2005 Rules for this 2 notices and how to responded for this notices. Please give your valuable suggestions for my Query and also give your guide lines for the above notices.

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4 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 11 May 2017

51. (1) Where a dealer who fails to pay tax due on the basis of the return submitted by him by the last day of the month in which it is due, he shall be liable to pay tax and a penalty of ten percent of the amount of tax due:

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

(2) If a dealer pays the tax, penalty and interest under sub-section (1) and subsequently it is found that the tax is not due, then such tax, penalty and interest shall be refunded to that dealer.

Durga prasad 11 May 2017

Thank you for your prompt response sir,

As per view, Shall we pay the penalty and penalty interest according to notices sir, We have no due of tax amount on right now. Is there is any other approachments sir.

Ms.Usha Kapoor (CEO) 14 May 2017

51. (1) Where a dealer who fails to pay tax due on the basis of the return submitted by him by the last day of the month in which it is due, he shall be liable to pay tax and a penalty of ten percent of the amount of tax due: Provided that before levying such penalty the authority prescribed shall give the dealer a reasonable opportunity of being heard. (2) If a dealer pays the tax, penalty and interest under sub-section (1) and subsequently it is found that the tax is not due, then such tax, penalty and interest shall be refunded to that dealer.