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CMA Intermediate · Direct and Indirect Taxation · Returns and Payment of Taxes

A registered person does not file a valid return within sixty days of service of a section 62 assessment order. He files it 20 days after the sixty-day period ends. What is the additional late fee under the proviso to section 62(2), and what happens to the order?

The additional late fee is Rs 2,000, being 20 days at Rs 100 per day beyond the first sixty days. Because the return is filed within the further sixty-day period, the assessment order is deemed withdrawn, though interest and the regular late fee still continue.

  1. ARs 2,000; the order is deemed withdrawnCorrect
  2. BRs 2,000; the order continues in force
  3. CRs 6,000; the order is deemed withdrawn
  4. DNo additional fee; the order is deemed withdrawn

Explanation

The proviso allows a further sixty days on payment of an additional late fee of Rs 100 per day of delay beyond sixty days. 20 days x Rs 100 = Rs 2,000. Since the return is filed within the extended period, the order is deemed withdrawn, with interest and section 47 late fee continuing. Rs 6,000 wrongly uses 60 days.

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