HC
holds that interest u/s 42 of Delhi VAT Act on refund of VAT amount accrues
after period specified for processing refunds/returns u/s 38(3)(a) and not from
date of filing return; Observes that sub-clauses (i) and (ii) of Section
38(3)(a) mandate refund within 1 or 2 months depending upon tax period (i.e.
monthly or quarterly) and Section 42(1) prescribes simple interest payable on
such refund at a rate notified by Government; Harmonious reading of Sections 38
and 42 clearly indicates that interest is to be paid from the date when same is
due to be paid to assessee or date when excess amount was paid, whichever is
later, and date 'when refund is due' would be the date mentioned in Section 38
(i.e. when refund becomes payable); Remarks, since both Sections 38(3) and
42(1) do not refer to the date of filing of return, same obviously cannot be
the starting point for interest payment, and “Obligation of the assessee to pay
tax and date when tax is payable, and the duty and date on which refund is
payable by the Revenue need not coincide and could be different as per the
statute”; Further, elucidates that, said interpretation is not in conflict with
Section 11 which deals with computation formula to calculate tax payable and
empowers dealer to seek adjustment or refund in case of a negative net
tax : Delhi HC
Subscribe to:
Post Comments (Atom)
Can GST Under RCM Not Charged and Paid from FY 2017-18 to October 2024 be Settled in FY 2024-25?
In a recent and significant update to GST regulations, registered persons in India can now clear unpaid Reverse Charge Mechanism (RCM) liab...
-
Particulars in Part 1 and Part 2 of Step-2 of registration form are required to be exactly the same as reported in the TDS statement. Plea...
-
When India introduced the Goods and Services Tax (GST), it created a big change in the way companies handle their taxes. Earlier, business...
-
A new website launched for TDS related matters www.tdscpc.gov.in TRACES – T DS R econciliation A nalysis and C orrection E nabling S yste...
-
In this post, I will discuss Secretarial Standards related to Proxies under SS – 2. Right to Appoint: A Member entitled to attend and ...
-
What is a Digital Signature? Answer: A digital signature authenticates electronic documents in a similar manner a handwritten signatur...
-
Companies often give gifts to their employees to boost morale, celebrate achievements, and promote a positive work environment. Such gifts ...
-
LEASE-DEED (A brief Introduction) Lease defined. A lease of immovable property is a transfer of a right to enjoy such property, mad...
-
Section 150 of the Finance (No. 2) Act, 2024, specifies that taxpayers will not receive refunds for taxes paid or input tax credits (ITC) re...
-
Overview The Supreme Court of India recently ruled on the applicability of the Most Favoured Nation (MFN) clause in tax treaties involvin...
No comments:
Post a Comment