Interest on delayed payment of tax [Section 50]

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....terest at such rate, not exceeding 18%, as may be notified by the Government on the recommendations of the Council. • the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, • shall be payable on that portion of the tax which is paid by debiting the electronic cash ledger. • Exception :- above proviso does not apply where such return is furnished after commencement of any proceedings under section 73 or section 74 [ or Section 74A^inserted vide Finance (No. 2) Act, 2024] in respect of the said period. Time period for calculation of interest [....

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....ithheld refund 6% 4 56 Interest on delayed refunds 6% 5 Proviso to 56 Interest on refund arising from order passed by Adjudicating Authority/ Appellate Authority/ Tribunal/ Court and not refunded within 60 days 9% Manner of calculating interest on delayed payment of tax [ Rule 88B ] •  In case, where the supplies made during a tax period are declared by the registered person in the return for the said period and the said return is furnished after the due date in accordance with provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 [ or section 74A inserted vide Notification No. 20/2024-CT dated 08.10.2024, w.e.....

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....the interest shall be calculated on the amount of tax which remains unpaid, • Period for which interest is payable • for the period starting from the date on which such tax was due to be paid till the date such tax is paid, at such rate as may be notified under section 50(1). [ Rule 88B(2) ] • In case, where interest is payable on the amount of input tax credit wrongly availed and utilised in accordance with section 50(3), • Amount on which interest liability to be computed • the interest shall be calculated on the amount of input tax credit wrongly availed and utilised, • Period for which interest is payable • for the period starting from the date of....

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....85(3) be considered only when electronic cash ledger or electronic credit ledger of the registered person is being debited. Mere, credit entry in cash ledger or credit ledger will not tantamount to payment of tax. • It may be noted that Section 39 (7) lays down the last date for remittance, as the last date on which the taxable person is required to furnish such return. Also, Section 2(117) lays down that a return shall be considered valid, only if the tax payable as per the return is paid in full. • Sections 73(5) & (6) provide that if the tax along with interest has been paid, the adjudicating authority shall not serve any show cause notice. • Section 73 8) provides that where a person has been serve....