interest payable

[giri gattupalli]

respected sir ,

one of my client's actual out put tax liability during the month of MARCH -2022 was 10 lakh rupees and i have declared as 8 lakh rupees only due to clerical mistake. and i have 5 lakh rupees input c/f for month of MARCH-22 .now i want to declare missed-out out put tax liability for MARCH-22 through filing FORM-DRC-03 and to discharge tax liability through debiting electronic credit ledger.(i have credit carry forward laying in my credit ledger around 4 lakhs at present ).and i need not to debit cash ledger to discharge my additional liability for month of MARCH-22 .

i request our eminents to discuss that, as per the amended interest provisions whether i have to pay interest for late declaration of out put tax liability or not even though i need not to pay any cash .

thanking you sir

AI Summary

Interest on Late Tax Declaration Disputed: Debate Over 18% Charge on Short-Paid Tax Under Amended Section 50 A client mistakenly declared a lower output tax liability for March 2022, reporting 8 lakh rupees instead of the actual 10 lakh rupees due to a clerical error. The client plans to correct this via FORM-DRC-03 using their electronic credit ledger without debiting cash. The discussion revolves around whether interest is payable on the late declaration, with opinions varying. Some suggest interest is applicable at 18% on the short-paid tax, regardless of payment method, due to amended Section 50. Others question the constitutional validity of interest charges when no financial loss to the government occurs.