KVAT penalty for non filing of VAT returns aned non payment of tax - Professionals - GST - TIK Share
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KVAT penalty for non filing of VAT returns aned non payment of tax

CA Pulkit Sharma


Section 72 of Karnataka VAT Act, 2003 deals with penalties related to Non-Filing of VAT retruns or non payment of tax due.

Penlaty if return is not filed or tax is not paid shall be calculated as follow:

  1. 50 Rs. per day is deafult is for more than 5 days, but penalty should not exceed-
    250  if the tax due is less than 250 Rs.
    If tax is more than 250 RS, penalty should not exceed tax amount.
  2. A futher penalty is also imposed,
    at the rate of 5% of turnover or 50 Rs. per day whichever is higher if default is for less than 10 days
    at the rate of 10% of turnover if the default is more than 10days.

Section 72 is re-produced is here for your reference:


72. Penalties relating to returns [and assessment]

(1)A dealer who fails to furnish a return or who fails to pay the tax due on any return furnished as required under the Act shall be liable to pay together  with any tax or interest due,]

   (a) a penalty of fifty rupees for each day of default and where such default is more than five days, such penalty,-

(i) shall not exceed two hundred and fifty rupees if the tax due is less than the said amount;

(ii) shall be calculated at fifty rupees per day not exceeding the amount of tax due, if the tax due is more than two hundred and fifty rupees; and]


 (b) a further penalty equal to,

(i) five percent of the amount of tax due or fifty rupees whichever is higher, if the default is not for more than ten days, and

(ii) ten percent of the tax due, if the default is for more than ten days


Mukesh Jain CA


Really good update.  Thanks for the same.