Accountancy Forum

I am unable to pay tax till 15 guide me i have 2 pay 100 rs per day penalty or it is KIBOR + 3%

Just read the Chapter-VII "OFFENCES AND PENALTIES" Section 33 of Sales Tax Act 1990,

<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by olympia</i>
<br />Just read the Chapter-VII "OFFENCES AND PENALTIES" Section 33 of Sales Tax Act 1990,


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I am still unclear by this S33(1).

1. Where any person
fails to furnish a
return within the
due date.


Such person shall pay a
penalty of five thousand
rupees
Provided that in case a
person files a return
within fifteen days of the
due date, he shall pay a
penalty of one hundred
rupees for each day of
default

i am still confused should i pay 100 rs per day or shld i go for Default surcharge KIBOR + 3%

5. Any person who fails to deposit the amount of tax due or any part thereof in the time or manner laid down under this Act or rules or orders made thereunder.

Such person shall pay a penalty of ten thousand rupees or five per cent of the amount of the tax involved, whichever is higher
Provided that, if the amount of tax or any part thereof is paid within fifteen days from the due date, the defaulter shall pay a penalty of five hundred rupees for each day of default
Provided further that no penalty shall be imposed when any miscalculation is made for the first time during a year
Provided further that if the amount of tax due is not paid even after the expiry of a period of sixty days of issuance of the notice for such payments by an officer of Sales Tax, not below the rank of Assistant Collector of Sales Tax, the defaulter shall, further be liable, upon conviction by a Special Judge, to imprisonment for a term which may extend to three years, or with fine which may extend to amount equal to the amount of tax involved, or with both.

Dear Olympia

What about S34


34. Default Surcharge.–
(1) Notwithstanding the provisions of section 11, if a registered person does not pay the tax due or any part thereof, whether wilfully or otherwise, in time or in the manner specified under this Act, rules or notifications issued thereunder or claims a tax credit, refund or makes an adjustment which is not admissible to him, or incorrectly applies the rate of zero per cent to supplies made by him, he shall, in addition to the tax due, pay default surcharge at the rate mentioned below—
(a) [***] the person liable to pay any amount of tax or charge or the amount of refund erroneously made, shall pay default surcharge at the rate of 1 KIBOR plus three per cent per annum of the amount of tax due or the amount of refund erroneously made; and
(b) Omitted
© in case, the default is on account of tax fraud, the person who has committed tax fraud shall pay default surcharge at the rate of two per cent per month, of the amount of tax evaded or the amount of refund fraudulently claimed, till such time the entire liability including the amount of default surcharge is paid.
(2) For the purpose of calculation of default surcharge,—
(a) in the case of inadmissible input tax credit or refund, the period of default shall be reckoned from the date of adjustment of such credit or, as the case may be, refund is received; and
(b) in the case of non-payment of tax or part thereof, the period of default shall be reckoned from the 16th day of a month (following the due date of the tax period to which the default relates) to the day preceding the date on which the tax due is actually paid.
Explanation.— For the purpose of this section tax due does not include the amount of penalty.

At this stage alongwith return only KIBOR + 3% is payable on the tax payable amount. Rs.100 per day is payable on late submission of sales tax return.