Appeal procedure

[VIGNESH]

Sir while appeal filing against Demand notice - 10% of the disputed amount need to be paid, how to calculate this 10% - is this 10% of the Total Demand notice? or 10% of only Tax portion in Dispute (Tax-15,000 +interest -₹ 5000, Penalty-10,000) in this case 10% is how much ? (should i take 10% of the total amount in notice of rs.30000/- or 10% of ₹ 15000 tax portion alone)

[KASTURI SETHI]

If tax liability is admitted, the whole amount of tax, interest, late fee and penalty is to be deposited. If tax liability is challenged, 10 % of tax is to be pre-deposited.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir.

[DR.MARIAPPAN GOVINDARAJAN]

If a demand notice is issued to you, you may agree the entire amount demanded in the notice as payable; or you may agree some amount payable and the balance amount not acceptable which is the disputed amount. You have to deposit 10% of such disputed amount.

[YAGAY and SUN]

Generally, to safe guard the revenue, pre-deposit provisions are enshrined in the Tax Laws for filing of appeals etc.

AI Summary

Pre-deposit requirement: a portion of disputed tax must be deposited when liability is contested; full demand if admitted.
Pre-deposit obligations for appeals depend on whether tax liability is admitted or contested: if admitted, the entire demand including tax, interest, late fee and penalty must be deposited; if contested, a specified pre-deposit proportion is required on the disputed tax amount rather than on the entire notice.