Just a moment...

Report
FeedbackReport
Bars
×

By creating an account you can:

Logo TaxTMI
>
Feedback/Report an Error
Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
+ Post a Query
Post a New Query
Title :
0/200 char
Description :
Max 0 char
Category :
Delete Reply

Are you sure you want to delete your reply beginning with '' ?

Delete Issue

Are you sure you want to delete your Issue titled: '' ?

Discussion Forum

Back

All Issues

Advanced Search
Reset Filters
Search By:
Search by Text :
Press 'Enter' to add multiple search terms
Select Date:
FromTo
Category :
OR
Search by Issue ID:
NOTE: If you have inputs in both the fields, then results will be shown for issueId first.
Issue ID : 117788
- 0 -

Can Tax be deemed to have been paid in time once interest is paid for delayed payment

Date 29 Jan 2022
Replies4 Answers
Views 1088 Views
Asked By

In one of the case the Department is demanding interest from the recipient for claim of ITC where supplier have delayed in their payment of taxes citing the reason that you have claimed ITC earlier then the same becoming eligible. In such situation, if the Supplier has paid interest then one should be in a position to contest that taxes are deemed to have been paid in time. Can someone throw more light on this theory?

4 answers
Sort by

Old Query - New Comments are closed.

Hide
- 0
Replied on Jan 30, 2022
1.

This is the reason, it becomes important for one to analyse whether the conditions mentioned in section 16(2) are to be complied pre-availing of credit or can be post as well.

In my view payment of tax by supplier and disclosing them in GSTR-1 should be post facto conditions.

- 0
Replied on Jan 30, 2022
2.

By paying interest on account of delayed payment of tax under GST law, you cannot treat it as paid in time.

I think in the Income Tax Act situation is different, income tax being direct tax.

- 0
Replied on Jan 30, 2022
3.

Sometimes the interest component for the same transaction becomes much much much higher than the tax due itself, due to the same being collected from supplier recipient 1, recipient 2 and so on .. for the same transaction..

There has to be a logical way out..

In my view the availing of credit before appearing in GSTR-2A should not attract interest when finally the invocie appears in GSTR-2A or 2b... Treating it as a pair facto condition

- 0
Replied on Feb 4, 2022
4.

In my view the payment of interest for delay in payment of tax shall not deemed that tax is paid on time. However, the buyer is allowed to claim input tax credit whenever supplier makes the payment to Govt. with or without interest.

Old Query - New Comments are closed.

Hide
Recent Issues