Interest on short paid duty., Central Excise

[DIPAK K]

GOOD MORNING DEAR EXPERTS. extracts from rule 8(3) of CER 2002."It is hereby clarified that the duty liability shall be deemed to have been discharged only if the amount payable is credited to the account of the Central Government by the specified date."As per rule 8(3) the outstanding amount will be paid along with applicable interest. Sir, I have the balance of ₹ 50000 in PLA. Total duty to be paid for November 2014 comes to 150000. Sir what will the outstanding amount for interest if:-(1) I debit ₹ 50000 on December 6 and pay ₹ 100000 by net banking on December 15 by net banking. 2. If I debit ₹ 150000 on December 16 after taking credit of ₹ 100000 deposited on December 15.Please reply. Thanks and regards.

Posts / Replies

[PAWAN KUMAR]

Dear Dipak Ji,

As per my view :

Balance in your PLA is 50000

Liability is 150000

You debited 50000 on 06.12.2014

For Balance amount PLA deposited on 15.12.2014 for ₹ 100000 and debited on 16.12.2014 in PLA.

Interest will be paid for 10 days from 06.12.2014 to 15.12.2014 on ₹ 10000 as per my view.

[DIPAK K]

THANK YOU SIR. What will be the interest liability in second option of my query. Thanks and regards.

[PAWAN KUMAR]

Dear Dipak Ji,

As per your second query, you will debit 150000 on 16.12.2014, Interest will applicable on 150000 from 06.12.2014 to 16.12.2014.

[DIPAK K]

Thank you sir for your quick response.