TaxTMI 
TaxTMI 
Sir, If in DRC 01 tax is mentioned and interest as per applicable rate u/s 50 then can department demand interest in DRC-07 Order or they had to quantify interest amount in SCN DRC 01
Interest in DRC 07
23 Nov 2023 
4 Replies 
3340 Views Asked by
Interest quantification may be deferred until payment, while notice limits restrict demands to specified grounds and amounts.
Interest cannot be precisely quantified until the date of payment, so notices commonly state interest as leviable under the relevant provision without exact computation. Notice rules limit orders to amounts and grounds specified, yet a statutory provision makes interest on short-paid or unpaid tax payable whether or not specified in the order. For tax shortfalls, mentioning interest in the notice without quantification is generally treated as sufficient if tax remains unpaid; for wrongly utilised ITC and erroneous refunds, quantification in DRC-07 and the very basis for interest may be mandatory and require separate analysis. (AI Summary)
Interest cannot be precisely quantified until the date of payment, so notices commonly state interest as leviable under the relevant provision without exact computation. Notice rules limit orders to amounts and grounds specified, yet a statutory provision makes interest on short-paid or unpaid tax payable whether or not specified in the order. For tax shortfalls, mentioning interest in the notice without quantification is generally treated as sufficient if tax remains unpaid; for wrongly utilised ITC and erroneous refunds, quantification in DRC-07 and the very basis for interest may be mandatory and require separate analysis. (AI Summary)