Tax collected but not paid requires immediate payment to government and attracts notice, interest and adjustment. Persons who collect tax but do not remit it are immediately liable to pay the collected amount to the Government; the proper officer may issue a show cause notice seeking payment and proposing a penalty equivalent to the amount. After considering representations the officer determines the amount due; interest accrues from collection until payment. A requested hearing must be granted and a reasoned order issued within one year, excluding periods of judicial stay. Amounts paid are adjusted against tax payable and any surplus is credited to the Fund or refunded to the person who bore the incidence under the Act's refund provisions.
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 paid requires immediate payment to government and attracts notice, interest and adjustment.
Persons who collect tax but do not remit it are immediately liable to pay the collected amount to the Government; the proper officer may issue a show cause notice seeking payment and proposing a penalty equivalent to the amount. After considering representations the officer determines the amount due; interest accrues from collection until payment. A requested hearing must be granted and a reasoned order issued within one year, excluding periods of judicial stay. Amounts paid are adjusted against tax payable and any surplus is credited to the Fund or refunded to the person who bore the incidence under the Act's refund provisions.
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