Skip to content

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

Under section 62, an officer issued an best-judgment assessment order to a registered person who had not filed a return even after notice. The order was served on 1 March. The person files a valid return 90 days after service, within the extended period permitted. Which statement is correct as per the provision?

Filing a valid return on day 90 falls within the further sixty-day window, so the assessment order is deemed withdrawn. However, an additional late fee of Rs 100 per day beyond day 60 applies, and interest under section 50(1) and late fee under section 47 continue to be payable.

  1. AThe assessment order is deemed withdrawn, and the person must pay an additional late fee of Rs 100 for each day of delay beyond 60 days, besides interest and late fee under section 47Correct
  2. BThe assessment order stays in force because the return was filed after 60 days
  3. CThe assessment order is deemed withdrawn and interest and late fee under section 47 are waived
  4. DThe assessment order is deemed withdrawn with no additional late fee, as the return was filed within 120 days

Explanation

The proviso to section 62(2) allows a further 60 days beyond the first 60 on payment of an additional late fee of Rs 100 per day of delay beyond 60 days. Here that is 30 days, i.e. Rs 3,000. The order is then deemed withdrawn, while interest and section 47 late fee continue.

Did you get it right without looking?

One question tells you little. A timed set on Returns and Payment of Taxes shows your real accuracy, how long you take and where you lose marks.

Practise Returns and Payment of TaxesFree diagnostic mock

More Returns and Payment of Taxes questions