Late Payment Interest also depends upon state to state
Interest Rate in DVAT
In Delhi,if vat is deposited late,then 15% p.a. interest is applicable from due date
For Example
Q1
Vat Computation Of March
Output Vat=10000
Input Vat=7000
Vat Payable
Suppose Vat challan of March paid on 10 May
What is interest payable?
View answer
Tax Amount=3000
Due Date=21 April (21st of next month)
Deposit Date=10 May
No of Days Late=19
Interest=3000x15%x19/365=23.42
Total Amount Payable
=Tax+ Interest
=3000+23.42
=3023.42