Section 40(3) in The Andhra Pradesh Value Added Tax Act, 2005
(3)Where any demand of tax or penalty or both is disputed by a VAT dealer or TOT dealer before any appellate authority or Sales Tax Appellate Tribunal or High Court and the demand becomes finally due either partly or fully an [interest at the rate of one and quarter (1.25%) percent per month] [Substituted for the words 'interest at the rate of one percent per month' by Act 21 of 2011, w.e.f. 15-9-2011.] shall be charged from the date such tax or penalty was originally due.
