Section 73B - Interest on amount collected in excess

Interest on excess tax collection: liability to pay prescribed interest unless timely voluntary payment waives it.

Where an amount has been collected in excess of tax for a taxable service, the person liable under section 73A(4) must pay interest at a Central Government-fixed rate within a prescribed band from the month after the amount ought to have been paid until payment. An exception waives interest if liability follows a Board direction under section 37B and the amount is voluntarily paid in full within a specified period without reserving appeal rights; otherwise interest applies on the whole amount. A reduced interest rate is provided for eligible small service providers, and interest is adjusted to reflect any appellate increase or reduction in the determined amount.