Late Filing Impact on Tax Audit
Late Filing Impact on Tax Audit yes, there are repercussions for the delayed submission of tax audit reports.
The penalty depends on the amount of turnover or gross receipts of the business and the reason for the delay.
♦ Penalty for late filing without reasonable cause:
If a fuel dealer fails to file their tax audit report without a reasonable cause, they will be liable to pay a penalty of ₹10,000 or 0.5% of the turnover or gross receipts, whichever is higher.
♦ Late filling penalty for late filing with reasonable cause:
If a fuel dealer fails to file their tax audit report with a reasonable cause, such as illness or natural disaster, they will be liable to pay a penalty of ₹5,000 or 0.25% of the turnover or gross receipts, whichever is higher.
♦ Penalty for non-filing of tax audit report:
If a fuel dealer fails to file their tax audit report altogether, they will be liable to pay a penalty of ₹50,000 or 2.5% of the turnover or gross receipts, whichever is higher.
The penalties for late filing of tax audit report can be waived if the fuel dealer can show that they had a reasonable cause for the delay.
However, the onus of proof is on the fuel dealer to show that they had a reasonable cause.
It is important for fuel dealers to file their tax audit report on time to avoid penalties. They should also keep good records of their income and expenses in case they need to file their tax audit report late with a reasonable cause.
Here are some tips for avoiding penalties for late filing of tax audit report:
- File your tax audit report on time.
- Maintain accurate records of your earnings and expenditures.
- If you are going to file your tax audit report late, have a reasonable cause and keep the supporting documents ready.
- Consult with a tax advisor if you have any questions about the tax audit filing process.
To visit: https://www.mca.gov.in/
For further details access our website: https://vibrantfinserv.com
