151.
160.
A Ltd starts an advertising agency on
20.7.2017. The details of bills raised by it during July to September, 2017 are
given as
under:
|
Bill no |
Date |
Value of taxable service (Rs) |
|
1 |
20.7.2017 |
2,00,000 |
|
2 |
24.7.2017 |
3,00,000 |
|
3 |
28.7.2017 |
5,00,000 |
|
4 |
30.7.2017 |
1,50,000 |
|
5 |
13.8.2017 |
4,50,000 |
|
6 |
15.8.2017 |
2,00,000 |
|
7 |
30.8.2017 |
4,00,000 |
|
8 |
1.9.2017 |
3,00,000 |
|
9 |
17.9.2017 |
1,00,000 |
|
10 |
25.9.2017 |
2,00,000 |
A Ltd has started its business in the current year. As per the section 22 of the CGST Act, any supplier whose aggregate turnover in a financial year exceeds Rs.20,00,000 shall be liable to register under this act. The aggregate value of the supply of A Ltd exceeds Rs.20,00,000 on 30.8.2017 when it issues bill number 7 of Rs.4,00,000. Thus he should apply for registration on or before 29.9.2017. However the application for registration is made on 22.11.2017. Thus there is delay of total 54 days.
A Ltd be therefore liable to pay a penalty of Rs. 10,000/- or an amount equivalent to tax evaded, whichever is higher under section 122(1)(xi).