Section 27 of Bihar VAT : Section 27: Assessment Of Dealer Not Filing Returns

Explanation using Example

Imagine a scenario where Mr. Kumar owns a furniture store in Bihar and is a registered dealer under the Bihar Value Added Tax Act, 2005. He is required to file his VAT returns quarterly, detailing his sales and the tax collected. However, due to negligence, Mr. Kumar fails to submit his VAT returns for the second quarter of the year by the due date as specified under Section 24 of the Act.

In accordance with Section 27 of the Act, the tax authorities send Mr. Kumar a notice giving him an opportunity to present his case. Despite the notice, Mr. Kumar does not respond or furnish the overdue returns. Consequently, the tax authorities assess the tax due from Mr. Kumar to the best of their judgment, which includes an estimation of his sales based on available data and standard industry margins. They also levy interest on the assessed tax amount for the period of delay.

This assessment and interest levied on Mr. Kumar's furniture store are in line with Section 27, and they are executed without affecting the tax authorities’ right to take further action under Section 81, which could include penalties for non-compliance or fraud.