The Government of Maharashtra has issued Notification No.VAT.1515/CR-81/Taxation-1 dated 05-11-2015 revising the late payment interest rates slabwise viz. for delay of first month @ 1.25% p.m., for next two months @ 1.50% p.m. and thereafter @2% p.m w.e.f. 1st December 2015.

Text of the Notification is as follows :-

FINANCE DEPARTMENT

Madam Cama Road, Hutatma Rajguru Chowk,

Mantralaya, Mumbai 400 032, dated 5th November 2015

NOTIFICATION

MAHARASHTRA VALUE ADDED TAX ACT, 2002.

No. VAT. 1515/CR-81/Taxation-1.—Whereas the Government of Maharashtra is satisfied that circumstances exist which render it necessary to take immediate action further to amend the Maharashtra Value Added Tax Rules, 2005 and to dispense with the condition of previous publication thereof under the proviso to sub-section (4) of section 83 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005);

Now, therefore, in exercise of the powers conferred by sub-sections (1) and (2) read with the proviso to sub-section (4) of section 83 of the said Act, and of all other powers enabling it in this behalf, the Government of Maharashtra, hereby, makes the following rules further to amend the Maharashtra Value Added Tax Rules, 2005, namely :—

1. (1) These rules may be called the Maharashtra Value Added Tax (Second Amendment) Rules, 2005.

(2) These shall come into force with effect from the 1st December, 2015.

2. In rule 88 of the Maharashtra Value Added Tax Rules, 2005, for the sub-rule (1) the following sub-rule shall be substituted, namely :—

“(1) The rates of interest for the purposes of sub-sections (1), (2) and (3) of section 30 shall be as specified in the table below :—

TABLE

Sr. No.

(1)

Period, liable for interest

(3)

Rate of interest

(3)

1 Upto one month One and a quarter per cent of the amount of such tax, for the month or for part thereof.
2 Upto three months One and a quarter per cent of the amount of such tax, for the month or for part thereof for the first month of delay and one and a half percent of the amount of such tax, for each month or for part thereof for delay beyond one month up to three months.
3 More than three months One and a quarter per cent of the amount of such tax, for each month or for part thereof for the first month of delay, one and a half per cent of the amount of such tax, for each month or for part thereof for delay beyond one month upto three months and two per cent of the amount of such tax, for each month or for part thereof for the period delay beyond three months.”

By order and in the name of the Governor of Maharashtra,

R. D. BHAGAT,
Deputy Secretary to Government.

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13 Comments

  1. priya says:

    is there any case law for interest on non payment of GST. is interest calculated on gross liability or net liability. can any one explain it based on case studies

  2. VISHWAJIT TRIVEDI says:

    annexure 8 excess credits in J2 where supplier has filed full j1 but shown less sale to J2 Filer( the dealer has claim excess tax credit in annexure J2 and supplier show less sales in J1 financial year 2015-16 now what interest charged 2% or 1.25%

  3. Shashikant G Goyal says:

    The govt. should have penalized its officers also similsrly who delay refunds by offering higher interest rates. This is nothing but premium on inefficiency. All laws are for dealers and tax payers, but no laws are ever enacted to see that babus perform efficiently and without delay.

  4. ganeshan says:

    It seems that like interest rate in service tax was amended slab wise i.e. first 6 months of delay 18%, next six months 24% and thereafter 30%, similarly the interest rate is revised here in MVAT.

  5. Jitendra Patel says:

    Give power to appellate authority for remission too in genuine case as no businessman intends to delay tax payment. Also interest on refund should be given till date of assessment order. Equity demands just and fair provisions of law.

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