Bookmarks   Feedback   Annual Subscription   New User   Login  
Tax Management India .com   
   TMI - Tax Management India. Com   
AO cannot re-open assessment merely for non filing of ITR unless the total income is exceeding maximum amount which is not chargeable to tax    *    WITH GST CONSTITUTIONAL AMENDMENTS, WHAT NEXT ?    *    Companies Act, 2013-25 Key Highlights    *    status foodgrain pulses and oilseed    *    Service tax exemption for transportation of life saving medicines    *    Applicability Of Service tax on Liquidated Damages    *    Goods and GST Bill passed    *    determination of assessable value for job work transaction    *    CENVAT CREDIT    *    Excise Cenvat credit on Electricity Power bill    *    Employees sent on deputation to subsidiary/ associate companies (Service Tax)    *    GLOW SIGN AND HOARDING    *    Regarding cenvat credit on service tax on rent a cab    *    Potato Chips as Namkeen    *    Central Excise Exemption of ₹ 150 Lakhs    *    Cenvat credit on water treatment plant    *    Cenvat Credit - refund - export of services - The registration is not the sole criteria for granting refund, so long the other conditions are satisfied, refund shall be granted - Tri    *    CENVAT credit demo cars capital goods input nothing is demonstrated today that a demo car falls in any of the Chapters dealing with capital goods - credit cannot be allowed - Tri    *    Period of limitation - in case duty was required to be paid on the strips, the appellant was entitled to avail credit of duty paid on the granules, which would have neutralized the entire demand on the strips - in this Revenue neutrally background, there could be no malafide on the part of the appellant to evade duty - Tri    *    Validity of statutory provisions - Imposition of penalty on company and directors - he legislature while in view of such situation has granted discretion to the executive, at the same time, provided for sufficient guidelines and safeguards so that such discretion does not convert into arbitrary or discretionary exercise of powers - HC    *    Strengthening Our Debt Markets (Dr. Raghuram G. Rajan, Governor - August 26, 2016 - at Annual Day Address to Foreign Exchange Dealers Association of India, Mumbai)
Article Section
Home Articles Value Added Tax - VAT and CST AMIT BAJAJ ADVOCATE
← Previous Next →

Penalties, Interest under PVAT Act, CST Act and pre deposit of 25 u/s 62(5) of PVAT Act can be adjusted from excess ITC.

Submit New Article

Discuss this article

Penalties, Interest under PVAT Act, CST Act and pre deposit of 25% u/s 62(5) of PVAT Act can be adjusted from excess ITC.
By: AMIT BAJAJ ADVOCATE
April 30, 2011
  • Article

Section 15 of PVAT Act 2005 deals with the Net Tax Payable by a taxable person. Sub section 1 of Section 15 provides that the output tax under PVAT Act shall be adjusted from the Input Tax Credit for determining Net Tax Payable by a taxable Person. If any excess ITC is still left then it is to be adjusted from the CST liability under CST Act 1956 at the option of the taxable person as per section 15(2) of PVAT Act.

Section 15(3) of PVAT Act provides that the Excess ITC if any left after adjustment of output tax or CST liability u/s 15(1) and 15(2) then such ITC shall be adjusted against any outstanding tax, Penalty or Interest under PVAT Act 2005 or CST Act 1956 as the case may be.

Section 15(3) of PVAT Act runs as under:

'Excess amount of input tax credit, if any, after adjustment under sub-section (2) shall be adjusted against any outstanding tax, penalty or interest under this Act or under the Central Sales Tax Act, 1956, as the case may be'

Thus  the Penalties levied or interest  under PVAT Act 2005 or CST Act,1956 can be adjusted from the Excess ITC. Moreover the word 'Shall' has been used u/s 15(3) which makes mandatory exhausting of Excess ITC if any left after adjustment u/s 15(2) for any outstanding tax,Penalty or Interest under PVAT Act 2005 or CST Act 1956.

Pre deposit of 25% u/s 62(5) can also be adjusted from Excess ITC: The Punjab VAT Tribunal has confirmed in Ganesh Iron and General Store, Killinwari (muktsar) Vs. State of Punjab decided on 18-05-2009 [(2010) 14 STM 486] and in many other cases that Excess ITC can also be utilised for payment of 25% of total tax, penalty or interest  which is pre condition before hearing of an appeal u/s 62(5) of PVAT Act 2005.

Thus if a person wants to file an appeal under Punjab VAT Act 2005 for which he is required to deposit 25% of Total Tax, Interest or Penalty u/s 62(5) as a pre condition for hearing of appeal, he can adjust such 25% of demand from the excess ITC if available and produce a certificate to that effect from the concerned ETO cum Designated officer before the appellant authority to satisfy the conditions of section 62(5) of PVAT Act 2005.

 

By: AMIT BAJAJ ADVOCATE - April 30, 2011

 

 
 
 

Discuss this article

 


 

← Previous Next →
what is new what is new

Advanced Search

Latest Updates

Forum

Featured

Experts

More Options

Communication




|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map || ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version