Updated on: December 17th, 2019 5:18 PM

VAT Penalties in Maharashtra

Various penalties are applicable under Maharashtra Value Added Tax Act for non-compliance under MVAT rules. In this article, we look at VAT penalties applicable in Maharashtra. Click here to know more about VAT in Maharashtra.

VAT in Maharashtra is no longer applicable from 1st July, 2017. VAT has been replaced by GST. Know more about GST registration and GST return filing.

Penalty for Late VAT Payment

Different types of penalty is applicable for late VAT payment in Maharashtra based on the VAT registration status of the dealer.

Late or Non-Payment by Unregistered Dealer

Simple interest at 1.25% for each month of delay from 1st April of the respective year to the date of payment of tax. Subject to the amount of interest not exceeding the quantum of tax payable for the respective year.

Late or Non-Payment by Registered Dealer

Simple interest at 1.25% for each month of delay from due date for tax payment.

Interest on Differential Dues

Simple interest at 1.25% for each month or part thereof. The interest under this sub-section is payable from the next date following the last date or the period covered by an order of assessment till the date of assessment.

Interest on Additional Tax

Interest at 25% of additional tax payable as per the return or revised return filed. If the amount of tax paid as per revised return is less than 10%, of the aggregate amount of tax paid as per the original returns, then no interest on additional tax is payable.

Operating without VAT Registration

Simple imprisonment which may extend to six months and with fine.

Failure to Furnish any VAT Return

Simple imprisonment which may extend to six months and with fine.

Knowingly Furnishing False Return

Rigorous imprisonment minimum one month and maximum one year and with fine.

Falsely Representing as Registered Dealer

Rigorous imprisonment minimum one month and maximum one year and with fine.