|
|
|
|
|
Sales Tax Review |
|
March 2007 |
Important Trade Circulars
|
|
No.VAT-
2007/Interest/Return Div.
|
Trade
Circular No.27 T of 2007 |
Mumbai, Dated:23.03.07 |
|
|
|
| Sub: |
Set-off
under rule 41C and 41E of the Bombay Sales Tax Rules, 1959.
|
|
Ref: |
Writ
Petition No. 1152 of 1991 decided by Hon. Bombay High Court on 31.01.2007 in the
case of M/s. Tata Motors Ltd. Vs State
of
Maharashtra. |
Gentlemen/Sir/Madam,
Interest @ 1.25% per month or part there of on the tax paid after prescribed
date is payable under sub-section (2) of section 30 of the Maharashtra Value
Added Tax Act 2002,read with rule 88 (1) of the
Maharashtra Value Added Tax Rules 2005. Fewer assessment orders will be
passed in VAT regime as the self assessment done by the dealers through
returns will be relied upon in majority of cases.
-
All
the dealers are, therefore, requested to calculate and pay in the return /
chalan itself the interest along with the tax paid after due date. This
will save the dealer’s time and efforts for making separate interest payment
as well as the department’s time for separate levy of interest and further
correspondence.
-
Penalty u/s 29(8) of the MVAT Act is attracted for non filing or late
filing of returns. No penalty under this provision will be levied in the
cases where full interest is paid suo- motto
along with the tax in the late return in the
aforesaid manner. In all other cases of late return filing, proceedings of
levy of interest and penalty will be completed
as per law.
-
This circular cannot be
made use for legal interpretation of the provisions of law, as it is
clarificatory in nature. If any member of the trade has any doubt, he may
refer the matter to this office for further clarification.
-
You are requested to
bring the contents of this circular to the notice of the members of your
association.
Yours faithfully,
(B. C. KHATUA)
Commissioner of Sales Tax,
Maharashtra
State,Mumbai. |
|
|
