The All India Tax Advocates Forum (AITAF) has requested the Delhi Government to reduce the exorbitant penalty being imposed by the Value Added Tax (VAT) Department on traders for late filing of return. The AITAF said this would create a business-friendly environment in the Capital.
AITAF president M.K. Gandhi said in a statement issued in the run-up to the presentation of the Delhi Budget for 2015-16 that the penalties imposed by the VAT Department for late filing of return were “quite stiff”.
The current rate of penalty of Rs.500 per day should be reduced to Rs.100 per day and maximum penalty from Rs.50,000 to Rs.10,000. This friendly gesture will relieve the traders, said Mr. Gandhi.
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The AITAF also urged the government to review “bogus demands” being raised by the VAT Department for the assessment year 2010-2011 in regard to finalisation of computer assessment made by the department under the Central Sales Tax Act.
The All India Tax Advocates Forum has said this will create a business-friendly environment