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CS Professional · Goods and Services Tax (GST) and Corporate Tax Planning · Compliance Rating, Anti-Profiteering, GST Practitioners and Authorised Representative

The Authority examining anti-profiteering concludes that Kaveri Foods Ltd has profiteered Rs 8,00,000. Kaveri Foods deposits the profiteered amount 20 days after the date of the Authority's order. What is the penalty payable under section 171(3A)?

The penalty is nil. Although the basic penalty is ten per cent of the profiteered amount, which would be Rs 80,000, the proviso waives it when the profiteered amount is deposited within thirty days of the order, and 20 days is within that period.

  1. ANil, since deposit was within thirty days of the orderCorrect
  2. BRs 80,000, being ten per cent of the profiteered amount
  3. CRs 8,00,000, being the full profiteered amount
  4. DRs 40,000, being five per cent of the profiteered amount

Explanation

Penalty is ten per cent of the profiteered amount, which would be Rs 80,000. However, the proviso says no penalty is leviable if the profiteered amount is deposited within thirty days of the date of the order. Deposit at 20 days qualifies, so the penalty is nil.

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