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)
Draft Income-tax Rules, 2026 - Key changes and brief overview
The Central Board of Direct Taxes (‘CBDT’) has released the Draft Income-tax Rules, 2026, along with accompanying Draft Forms, to operatio...
-
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...
-
01. No change in Income Tax rates, surcharge & cess. 02. Income tax Act 2025 effective from April 1, 2026. 03. Old regime tax ...
-
The Central Board of Direct Taxes (CBDT) released the Draft Income Tax Rules, 2026 on February 7, 2026. It has invited suggestions and opi...
-
01. The present employer contribution is restricted to 12%. 02. In the proposal the 12% limit removed 03. It means employer contri...
-
The posting had been move to another website. Please click the link below to get the access of the same. https://taxofindia.wordpress....
-
At first glance, DGFT Public Notice No. 42/2025-26 appears to be a mundane update—just three new fields to populate on the electronic ...
-
Introduction Employee welfare is a cornerstone of corporate responsibility, and gratuity forms a critical part of the social security benefi...
-
In a recent and noteworthy ruling, the Hon’ble Delhi Income Tax Appellate Tribunal has provided important clarity on the scope of appellat...
-
In a significant ruling that provides relief to taxpayers and clarifies the scope of the Goods and Services Tax (GST) law, the Nagpur Benc...
-
COMMON ERRORS OF GST PORTAL. 1. Error Code- 404- No documents found Error Category / Form- Download File request Error Massage – ...
No comments:
Post a Comment