What happens when a person registered in VAT does not submit returns?
VAT liability increases due to addition of default surcharge under section 88 of the Federal VAT Bill, 2010. Besides a penalty of Rs.5,000/- is invoked and if the return is not filed within fifteen days of the due date, a penalty of Rs.1,000/- for each day of default is payable under Serial No.2 of the Third Schedule of the Bill, read with section 89 thereof.
