w.b. value added tax late submission of form 16 for composition scheme

ANIRBAN (Querist) 05 March 2011 This query is : Resolved
A dealer registered under w.b value added Tax filed all returns in form 15 in due time but he fails to submit the form 16 in due time i.e within 30 june, he files the f-16 in in 31st july. In this regard he was not informed by the sales authority at the time of assessment the ld. officer passed a ex-party order without mentioning the date of serving notice nor the date of adjournment and huge enhancement of tax on the higher % of v.a.t. In this situation does the Appellate authority has the power to modify the order by allowing the Composition Scheme of .25%. Pl help me at the time of answering by mentioning the sections

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R.Ramachandran (Expert) 06 March 2011
According to Rule 16(4) A registered dealer intending to exercise his option for a year to pay tax in accordance with the provisions of sub-section (3) of section 16, shall make an application in Form No. 16, to the appropriate Additional Commissioner or the Deputy Commissioner duly authorised by the Commissioner for such purpose, for permission to do so, within sixty days from the commencement of the year in respect of which the option is exercised.

If the option was not exercised within 60 days from the commencement of the year, then you cannot ask for compounded rate. The Assessing Authority need not give any notice to you in this regard because it goes without saying that you did not exercise option within 2 months from the commencement of the year and therefore you are liable to pay tax at normal percentage on the basis of the turnover shown by you in your returns.

Even the Appellate Authority will not be able to reduce the tax to 25% since you did not exercise your option within 2 months of the commencement of the year.

These are all taxation provisions, any failute on the part of the assessee cannot be condoned especially when it involves payment of tax.