Tarun Karthick
Sri Vijaya Puram, 16 January 2025
The Union Territory (UT) Tax Department has issued Notices of Default Assessment of Tax, Interest, and Penalty to dealers registered under the Andaman and Nicobar Islands Value Added Tax (VAT) Regulation, 2017, for violations of the regulation, rules, and directives issued thereunder.
The assessment process for VAT pertaining to the period 2017-2018 to 2020-2021 has been initiated, and assessments for 138 registered dealers have been completed so far.
During these assessments, several violations were identified, including defaults in tax payments, failure to submit quarterly returns, and tax deficiencies. These violations have resulted in the imposition of penalties under the relevant provisions of the regulation.
The department’s assessments revealed tax deficiencies, including interest, amounting to ₹1,47,50,535. Additionally, penalties under the applicable sections have been levied, totalling ₹4,89,93,780, against the dealers for their non-compliance with the VAT rules and regulations.
Reiterating its commitment to protecting the government exchequer, the UT Tax Department emphasised that violations of the VAT regulation, rules, and directives will not be tolerated. Stringent actions will be taken against defaulters under the relevant legal provisions.
Registered dealers have been urged to strictly adhere to the provisions of the Andaman and Nicobar Islands Value Added Tax Regulation, 2017, Rules 2020, and other directives to avoid penalties and ensure compliance.