Interest Payable by Dealer under MVAT Act and Rate of Interest

 

Due Date of Payment of Tax: MVAT is payable by dealer on or before due date of filing the return. [Rule 41]

Interest is payable buy dealer u/s.30 of Maharashtra Value Added Tax Act, 2002.

Sec 30(1) Interest is to be paid by Unregistered Dealers on late payment or non payment of tax due as he has failed to apply for registration in time. Interest is to be calculated from 1st April of the year in which he has defaulted in getting registration to the making payment of tax. When tax is paid in part, then interest is to be calculated to that date in respect of part payment. However the amount payable under this sub-section in respect of a year need not exceed the amount of tax payable in respect of that year.

Sec 30(2) Interest is payable by Registered Dealer on late payment of tax, i.e. interest is paid after due date of filing return. Interest is to be calculated form due date to date of payment of tax. If tax is payable on filing of revised return or fresh return, then interest is to be calculated from due date of filing original return to date of payment of tax.

Sec 30(3) Interest payable by Registered Dealer on dues on assessment (for any period).

i)  interest is to be calculated on the amount remaining unpaid; after taking into consideration the amount on which interest is paid u/s.30(2) and has remained unpaid up-to one month after the end of the period of assessment,

ii)  Interest is to be calculated from next date following last day of the period covered by assessment order to the date of assessment.

 

Sec 30(4) Interest payable of Additional Tax Calculated: Interest is payable by any dealer, on amount of tax (Additional tax) paid along with one or more return filed on account of circumstances mentioned in section 30(4). under clause (a) & (b)

    Clause (a) the following proceedings have been commenced and return has filed

        i) audit of business of dealer for any period,

        ii) inspection of the accounts, registers and documents pertaining to any period, kept at an place of business of the dealer, or

       iii) entry and search of any place of business of any other place where the dealer has kept his accounts, registers, documents pertaining to any period or tock of goods,

    Clause (b) in consequence of any intimation issued under sub-section (7) of section 63.

Interest is payable @25% of Additional Tax Paid

RATE OF INTEREST

i) For purpose of calculation of interest sub-section (1), (2) & (3) of section 30, Interest payable by dealer is to be calculated @1.25% of amount of tax. Interest is payable @ 1.25% for each month or part thereof. [Rule 81(1)] Thus interest payable is simple interest.

ii) For purpose of clause (4) of section 30, interest payable is equal to 25% of additional tax paid.

Interest is to be paid, along with tax before filing MVAT return.

Tax Saving Deduction u/s. 80CCF on Income Tax

For Financial Year 2010-11 & 2011-12 i.e. Assessment Year 2011-12 & 2012-13, a tax payer can claim deduction or Rs.20,000/- by investment in Infrastructure Bonds.

• Deduction u/s.80CCF - is allowed in addition of Deduction of Rs.1,00,000/- available u/s.80C.
• The deduction is available to assessees being Individual and Hindu Undivided Family (HUF) and not other assessees like Firms, Companies, Turst, etc.
• During any financial year, Maximum Deduction allowed u/s. 80CCF is Rs.20,000/- only.
• Investment is to be made in only Infrastructure Bonds notified by Central Government.

At present such Infrastructure Bonds are issued by :

• L & T Infra Tax Saving Bonds 2011B Series open up to 24th December, 2011 with 9% Interest with Rating-(ICRA)AA+” from ICRA and “CARE AA+ from CARE
• IDFC LONG TERM INFRASTRUCTURE BONDS open upto 16th December, 2011
  Rating- (ICRA)AAA” from ICRA and “Fitch AAA(Ind) from Fitch

Related topic DEDUCTION U/S.80C OF INCOME TAX

Revised interest rate and maturity value of National Saving Certificate issued after 1st December, 2011

new Revision in Interest Rates of Post Office Small Savings Schemes w.e.f 1st April 2012

Table for calculation of interest and value of National Savings Certificate (VIII Issue) at end of every year completed.
Including Table/Chart for National Saving Certificate (VIII Issue) issued after 1st December, 2011 (1-12-2011)
NSC 8th issued after 1-10-2011 will be issued for the period of 5 years. Amount payable after 5 years for every Rs.100/- will be Rs.150.90/-
NSC (8th issue) issued after 1-10-2011 can be prematurely withdrawn after 3 years. Premature encashment will be done along with interest but after discount. The discounted premature repayment  values will be as per Table II.

TABLE I

The year for which interest accrues	Amount of interest (Rs.) accruing on the certificates of Rs. 100 denominations purchased between
	If NSC (VIII Issue) is purchased on or after March 1, 2002 but before March 1, 2003	Cumulative value of National Saving Certificate at end of period	If NSC (VIII Issue) is purchased on or after March 1, 2003 but before December 1, 2011	Cumulative value of National Saving Certificate at end of period	If NSC (VIII Issue) is purchased on or after December 1, 2011	Cumulative value of National Saving Certificate at end of period
Face Value	100	100	100	100	100	100
First Year	9.20	109.20	8.16	108.16	8.58	108.58
Second Year	10.05	119.25	8.83	116.99	9.31	117.89
Third Year	10.97	130.22	9.55	126.54	10.11	128.00
Fourth Year	11.98	142.20	10.33	136.87	10.98	138.98
Fifth Year	13.09	155.29	11.17	148.04	11.92	150.90
Sixth Year	14.29	169.58	12.08	160.12	--	--
Total Interest	69.58	--	60.12	--	50.90	--
Maturity Value	169.58	--	160.12	--	160.12	--

Value are purpose of calculating Income Tax and indicating Value of National Saving Certificate in the Accounts of the Holder.
The values are as per notification issued by the Government
Pre-mature encashment of National Saving Certificate is not allowed in case of NSC issued before 1st December, 2011.
Incase of NSC (8th Issue)  issued on or after 1st December, 2011, NSC can be prematurely encashed along with interest but after adjustment for discount. The discounted payment will be as per Table II given below

TABLE II

Period from the date of the  certificate to the date of its encashment	Amount payable inclusive of interest (Rupees)
Three years or more, but less than three years and six months	123.14
Three years and six months or more, but less than four years	127.49
Four years or more, but less than four years and six months	131.99
Four years and six months or more, but less than five years	136.65

NSC Interest calculator, chart to calculate accrued NSC interest

Details of 10 Years National Saving Scheme, NSC (IX-Issue) introduced with effect from 1-12-2011

new Revision in Interest Rates of Post Office Small Savings Schemes w.e.f 1st April 2012

• 10Years NSC (IX) issue has been introduced with effect from 1-12-2011. The new certificate are being issued from this date onwards.
• The Certificates will be in denomination of Rs.100, Rs.500, Rs.1,000/-, Rs.5,000/- & Rs.10,000/-.
• The Certificate shall mature after period of 10 years and investment of Rs.100/- shall fetch Rs.234.35 on expiry of 10 years.
• Interest is calculated @8.7% compounded half yearly
• Interest accruing at the end of the year shall be as per table/chart given below

The year for which interest accrues	Amount of Interest accruing On Certificate or Rs.100/-
First Year	8.89
Second Year	9.68
Third Year	10.54
Fourth Year	11.48
Fifth Year	12.50
Sixth Year	13.61
Seventh Year	14.82
Eighth Year	16.13
Ninth Year	17.57
Tenth Year	19.13
Total Interest	134.35
Maturity Value	234.35

• The interest on certificate shall be liable to Income Tax on annual accrual on basis as per table above. No tax shall be deducted at the time of payment of discharge value
• Certificate can be en-cashed any time. If certificate is en-cashed before one year from date of purchase, only Face Value will be received without any interest. If the certificate is en-cashed after one year but before 3 years, NSC will be en-cashed at discount, i.e. face value will be paid and interest will be paid simple interest at rate of interest applicable to post office saving account form time to time. In case of premature encashment/repayment after 3 year the amount will be paid as follows.

Period of Holding	Amount receivable inclusive of interest  Rs.
3 Year to less than 3 Year 6 Months	123.14
3 Years 6 Months to less then 4 Years	127.49
4 Year to less than 4 Year 6 Months	131.99
4 Years 6 Months to less then 5 Years	136.65
5 Year to less than 5 Year 6 Months	143.81
5 Years 6 Months to less then 6 Years	149.13
6 Year to less than 6 Year 6 Months	154.65
6 Years 6 Months to less then 7 Years	160.37
7 Year to less than 7 Year 6 Months	166.3
7 Years 6 Months to less then 8 Years	172.46
8 Year to less than 8 Year 6 Months	178.84
8 Years 6 Months to less then 9 Years	185.46
9 Year to less than 9 Year 6 Months	192.32
9 Years 6 Months to less then 10 Years	199.43
on completion of Tenth Year	234.35

• The certificate can be held in Single name of an adult or on behalf of a minor, jointly by two adults payable to both jointly or to the survivor (Joint ‘A’ Type Certificate)  or jointly by two adults, payable to either of the holders or survivor (Joint ‘B’ Type Certificate).
• Non Resident Indians will not be eligible to purchase these NSC.
• The NSC can be purchased from Post-office by payment in cash, or locally drawn cheque, or withdrawal from post officer saving account or  surrender of old certificate.
• Certificate shall be issued immediately when payment is made in cash and where payment is made by cheque, the certificate shall be issued after realising proceeds of the cheque
• The certificate can also be pledged to Government Authorities.
• Nomination facilities are also available for certificate of value of Rs.500/- and above. Nomination  can be made at time of purchasing the certificate or any time thereafter. Variation and Cancellation of Nomination is also possible.
• The certificate shall be liable to Income Tax on basis of annual accrual on basis of table above. No tax shall be deducted at the time of payment of discharge value.
• Deduction u/s. 80C is not available as no notification has yet been issued under Income Tax Act
  
  
  NSC Interest Calculator
  Chart to calculate accrued NSC interest