India steps-up VAT compliance with more fines

Following a recent increase in the number of Indian VAT audits, a new range of fines has been introduced to help improve the weak compliance record of many firms.

From 12 September, Delhi will introduce increased fine regime, including:

Late Indian VAT registrations will attract a daily fine of 500 rupees

A fine of 500 rupees for every day a VAT registration is not correctly kept up-to-date or reflects a businesses’ changed status

Late Indian VAT returns will suffer a daily fine of 500 rupees per day

There will be a forgiveness amnesty for companies which voluntarily come forward to declare any overdue compliance obligations.