Non payment of vat

visu (Querist) 08 November 2011 This query is : Resolved
What shall be the consequence of non payment of VAT;

A client who has not paid the VAT liability and also not filed the return..

Is it so that VAT registration will be cancelled if returns/liabilities are not paid/filed consecutively..?

What is the remedy...!
Experts please advise.

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Raj Kumar Makkad (Expert) 08 November 2011
Though VAT rules for State to State are different and you have not disclosed your State even though it is brought to your kind knowledge that non filing of VAT return and non-deposit of VAT amount in time with VAT authorities is a serious offence which not only fetches criminal liability under section 409 IPC but authorities may also impose penalty up to 10 times of such assessed amount along-with cancellation of VAT registration.

prabhakar singh (Expert) 09 November 2011
You have right apprehensions in your mind about violation of law committed by your client and repercussions there of rightly and well detailed already by Mr.Makkad.

ajay sethi (Expert) 09 November 2011
agree with experts

R K JAIN (Expert) 10 November 2011
VAT registration will not be cancelled as far as the business is running. Law will take other course of action to recover the tax and penalty as available under the land revenue act and sale tax act of the state.