TaxTMI 
TaxTMI 
Sir. kindly clarrify , We have received a notice for non payment of RCM for financial year 2017-2018 unforunately we have missed the same, can we pay tax +interest and claim tax now!
RCM - not paid
18 Aug 2023 
10 Replies 
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Reverse charge mechanism: non-payment notice requires paying due tax with interest and may permit contested ITC claims.
Notice for non-payment of tax under the reverse charge mechanism for FY 2017-18 raises whether tax plus interest can now be paid and ITC claimed. Interest is payable on delayed tax. ITC is generally available only until the due date for filing the return for March of the following year; after that date ITC for the year is typically not claimable. Supplies from unregistered suppliers present a contested position where ITC may be litigated; advisers sometimes recommend paying tax and interest and claiming ITC but not utilising it pending favourable orders. (AI Summary)
Notice for non-payment of tax under the reverse charge mechanism for FY 2017-18 raises whether tax plus interest can now be paid and ITC claimed. Interest is payable on delayed tax. ITC is generally available only until the due date for filing the return for March of the following year; after that date ITC for the year is typically not claimable. Supplies from unregistered suppliers present a contested position where ITC may be litigated; advisers sometimes recommend paying tax and interest and claiming ITC but not utilising it pending favourable orders. (AI Summary)