INTEREST FOR
BELATED PAYMENT OF TAX
Belated submission of TNVAT Return will
attract interest at one and a quarter
per cent (1.25%) of the tax payable for every month or part thereof under
section 42(4) of the Tamil Nadu Value Added Tax Act 2006, from 1.1.2007 to 28.5.2013 in addition to
the tax amount for the entire period of default.
Belated
submission of TNVAT Return will attract interest at two per cent (2%) of the tax payable for every month or part
thereof under section 42(4) of the Tamil Nadu Value Added Tax Act 2006, from 29.5.2013 onwards in addition to
the tax amount due for the entire period of default.
Provided that
if the amount
remaining unpaid is
less than one hundred rupees and
the period of default is not more than a month, no interest shall be paid. [Section 42(3)]
Provided further
that where a
dealer or person
has preferred an appeal or
revision against any order of assessment or revision of assessment under this
Act, the interest payable under this sub section, in respect of the amount in
dispute in the appeal or revision, shall be postponed till the disposal of the
appeal or revision, as the case may be, and shall be calculated on the amount
that becomes due in accordance with the final order passed on the appeal or
revision as if such amount had been specified in the order of assessment or
revision of assessment as the case may be.[Section 42(3)]
IF SELLING DEALER’S
REGISTRATION CANCELLED AND ITC AVAILED BY PURCHASING DEALER
Similarly
if a selling dealer’s registration cancelled and if the input tax credit
availed by the purchasing dealer, the input tax credit already availed shall be
paid from the date from which the order of cancellation of selling dealer’s
registration certificate takes effect, with interest for belated payment of tax
at the rate of one and quarter per cent from 1.1.2007 to 28.5.2013 per month
and at the rate of two per cent from 29.5.2013 onwards per month from the date
of cancellation to the date of ultimate payment. In simple Tax and interest
amount has to be paid by the purchasing dealer from the date of cancellation of
selling dealer’s registration certificate. [Section 19 (15)].