notice us 72(3) A of Kvat act 2003
one of my client has not filed VAT return from april 2015 till today. what will be the penalty and interest if he has no tax payable. (iUpto December Rs. 12,000 input credit )
the department has put penalty Rs. 50 each day , total Rs. 35,000. but it should be Rs. 250 or Amount of tax payable whichever is higher. Can I reduce the penalty to Rs.250 on this basis.
suggest me some other points to reduce the penalty.
Section 72(3) sets penalty if return filed is incorrect or incomplete. You mentioned that assessee has not filed return.
Since assessee has not filed return, question of section 72(3) does not arise. VAT people are funny, believe me.
You are liable for penalty for Rs. 250 only under section 72(1).
penalty of Rs. 250 as whole upto December or Rs. 250 for each month.
Thanks in advance