Interest applicable under TNVAT law, VAT + CST

[yash arya]

Dear Sir,

Under Sec 42(3) of TNVAT Act, interest is payable on belated payment of tax assessed by AO. In the case of short payment of tax detected during vat audit, whether the auditor has to quantify the interest and report or else leave it to the discretion of  Dept. to recover the interest/penalty ? Kindly clarify with any case law in point/Dept. clarification.

-Shekar Rajagopal

Posts / Replies

[MARIAPPAN GOVINDARAJAN]

Dear Sir,

If any interest is due on short payment of tax, it is automatic. The assessee is to pay the tax without waiting for any notice from the Department. If there is delay the assessee is to pay interest for such delayed period if also.

Regards,

Dr. M. Govindarajan