Regarding sales tax

Mr Satish

Closing your office & returning TIN no would not solve your problem.The only wayout is to fight in the appeal. Further, filing bankruptcy would not also help as it would not render revenue autorities helpless to recover government dues.They would get an order to auction all your belongings (except your PPF A/c which cannot be attached) & will attach all your share in the property to the extenct those belong to you even if you were not the sole owner.

Going Bankrupt is last resort, before that honestly analyse as follows.

1. Since you had a shop, counter sale against cash payment would be there, generally pre VAT time all these sales were tax paid.

2. Did you charge sales tax by showing the same in your bills and then did not deposit with the department ?

3. Generally Sales Tax guys once raid put exorbitant amount of tax, interest and double the penalty.

4. It is a fact that something wrong you have done, but to what extent ? Admit it, if it is reasonable, the appellate authority may consider reducing your liability.

5. Look at your purchase bills, are they tax paid ?, look at your returns how have you made, how much tax you paid along with your returns.

6. Make a full analysis of all the papers on record, make your tax liability calculation yourself.  See for all th years how much you have to pay?

7. Wherever you have charged tax and did not deposit, you will face heavy penalty.

8. Do not give up without working out entire calculations, sometimes we get bog down by the paper work, do it, you will be surprised that all is entirely in your ability to clear off.

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THANKS HARI  FOR THE ADVICE 

I HAVE DONE WRONG BUT NOT TO THAT EXTENT THAT THEY ARE ASSESSING ,ACTUALLY THEY HAVE A STRATEGY WHICH WE ALL KNOW ,THAT MORE THEY SHOW THE PENALTY AND AMOUNT MORE WE GET FRIGHTENED AND MORE WE BRIBE THEM  ,ALSO THE APPELATE AUTHORITY ARE NOT READY TO DISCUSS ANYTHING THEY ARE JUST GOING THROUGH THE ASSESED LETTER AND DEMANDING THE SAME ,IN THAT CASE  MAY BE IF I GO TO SECOND APPEAL OR STILL HIGHER THE SAME THING WILL BE THERE ,SO I AM JUST CONFUSED WHAT TO DO AS I CANNOT PAY THAT MUCH MONEY. MAY BE I WILL WAIT AND WAIT TILL THE CASE GETS VERY OLD AND I CAN GET SOME RELEIF IN AMENISTY SCHEME ,ITS ALREADY 7 TO 8 YRS OLD CASE .PLEASE SUGESST ME IF YOU HAVE SOMETHING THAT CAN HELP ME OUT 

THANKING YOU 

THANKS Mr TRIVEDI 

BUT  THESE GUYS ARE NOT READY TO HEAR ANYTHING THEY ARE JUST GOING THROUGH THEIR ASSESMENT ORDER AND ARE TELLING TO PAY THE SAME AMOUNT OF PENALTIES ,TAXES AND EVERYTHING .WE ARE READY TO NEGOTIATE BUT THEY ARE NOT INTERESTED .I CANT PAY THAT MUCH MONEY , THE SAME THING SHALL HAPPEN IN OUR 2nd APPEAL OR HIGHER DEPARTMENT ,IF THEY ASSUME THE SAME AMOUNT THAT THEY HAVE ASSESSED THEN I WILL BE ON ROAD ,I DONT KNOW UPTO HOW MANY YEARS I CAN KEEP ON EXTENDING THE CASE BUT CAN U SUGGEST IF I KEEP ON EXTENDING THE CASE FOR MORE 5 TO 6 YEARS THEN MAY BE THEY WILL NEGOTIATE ? ITS ALREADY 6 TO 7 YEARS OF CASE .PLEASE SUGGEST IF YOU WERE INTO MY PLACE 

THANKING YOU 

Point is appellate authority has jurisdictional powers in the matter of sales tax related penalty, so they can recover by auction (kurki) of any property in the name of promoters of the firm. If you cannot argue with them, then give your fair reply in writing (you must have already given), make grounds that Sales Tax department is not right in assessing so much tax penalty, also read the state sales tax law, regarding limitation of recovery, then if the order by apellate authority is against you, then approach the High Court. This way you can take it to few years more, but if you have done something wrong, then you have to pay with interest, so keep this in mind. At High Court level truth and legality comes out on the part of both the parties.