Advance Receipt from Customer, VAT + CST

[MUNIRAJ SRINIVASAN]

Under VAT my client has doing Construction business , he has received advances from his client, if delay payment of VAT amount (ADVANCE ) interest and Penalty is applicable

Posts / Replies

[Pradeep Khatri]

Dear Muniraj,

If, payable tax under VAT Act read with Rules made thereunder, is not deposited to the exchequer within prescribed limit, then, at the time of assessment, interest and penalties are levied/imposed. Generally, under VAT Act, tax is payable when any goods are sold, on receipt of advance, there is no provision to pay the tax unless until it is specified in the notification itself.

Please check KVAT provision to dig the correct position in this regard.

Regards,

Sameer Malhotra - Consultant

(YAGAY and SUN) - Management, Business and Indirect Tax Consultants