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)
Interest on Foreign Currency Loan & Corresponding Forex Loss for Strategic Share Acquisition Held Deductible as Revenue Expenditure
The tax treatment of interest on funds borrowed to acquire shares hinges on a single, crucial distinction: the purpose behind the acqu...
-
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...
-
Section 68 -Cash credits Section 69 -Unexplained investments Section 69A - Unexplained money, etc Section 69B -Amount of investme...
-
The overall effective tax rate of a U.S. multinational corporation may have significant impact on the value of its stock. Therefore, it ...
-
An eminent concern within the GST framework pertains to the entitlement of Input Tax Credit (ITC) concerning expenditures associated with In...
-
There are certain changes in India's tax rules for TDS on payments made to non-residents. The Income Tax Act, 2025 ('ITA 2025'...
-
Recent judicial pronouncements across different forums have clarified several important aspects of Indian income tax law, particularly relat...
-
Ahmedabad Tribunal Special Bench has ruled that corpus distributed on dissolution of an offshore discretionary trust to resident Indian be...
-
The posting had been move to another website. Please click the link below to get the access of the same. https://taxofindia.wordpress....
-
Did you come across many errors and mistakes while checking your CIBIL report status? Are you wondering how to clear yourself out of CIBIL ...
-
The Income Tax department has been modified the Form No. 15G & 15G as per amended notification No. 11/2013 [F.NO.142/31/2012-SO(TPL)]/...
No comments:
Post a Comment