30 December 2011

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


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.