Tax collected but not remitted: collectors must pay amounts to the Government and face notice, interest and penalty risks. Section 76 requires any person who collected tax amounts but failed to remit them to immediately pay those amounts to the Government regardless of supply taxability. The proper officer may serve a show cause notice for payment and proposed penalty, determine the amount due after representations, and require payment; interest under section 50 accrues from collection until payment. Payments are adjustable against the person's tax liability for the related supplies, and any surplus is credited to the Fund or refunded to the person who bore the incidence.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax collected but not remitted: collectors must pay amounts to the Government and face notice, interest and penalty risks.
Section 76 requires any person who collected tax amounts but failed to remit them to immediately pay those amounts to the Government regardless of supply taxability. The proper officer may serve a show cause notice for payment and proposed penalty, determine the amount due after representations, and require payment; interest under section 50 accrues from collection until payment. Payments are adjustable against the person's tax liability for the related supplies, and any surplus is credited to the Fund or refunded to the person who bore the incidence.
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