Interest on VAT refunds and defaults: daily simple interest from due date governs entitlement and liability.

Section 42 entitles refund claimants to daily-computed simple interest at the government-notified annual rate from the later of the refund due date or the date of overpayment until refund payment, after deducting any tax, interest, penalty or other dues and adjusted for subsequent variation; delay attributable to the claimant is excluded. It also makes defaulters liable to daily simple interest from the date of default, provides for refund or adjustment of interest where assessed amounts are reduced, and requires payment of interest for periods of stayed collection if the stay is vacated.

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