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TMI BlogConfusion while reading Section 76 along with Section 73/74X X X X Extracts X X X X X X X X Extracts X X X X ..... Confusion while reading Section 76 along with Section 73/74 X X X X Extracts X X X X X X X X Extracts X X X X ..... TR-1, under which section can Department demand Tax. The Area of concern for me is the Penalty. Section 76 asks for 100 Penalty and 73/74 asks for Lower rates of penalty (Lowest being Nil and 15% respectively) Reply By KASTURI SETHI: The Reply: Sh.Punit Aggarwal Ji, In this scenario, penalty under Section 73 will be imposed upon by the department. There is no confusion. Section 73 stands for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penalty on account of bona fide mistake. Mistake committed without intention to evade tax e.g. calculation error, procedural lapse, technical lapse etc. Section 74 is for penalty on account of mala fide intention to evade tax. Section 76 stands for penalty on those persons who collect tax which is not leviable as per the Act and keep that collected tax with himself. He does not depost such coll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected into Govt. account. This offence is very very serious. None has right to retain such tax with one's pocket. Reply By GB Rao: The Reply: Dear sir, I agree with Shri Kasturi sir. Reply By Punit Agarwal: The Reply: But Kasturi Sir, Section 76(1) clearly states that " irrespective of whether such supplies in respect of which such amount collected is taxable or not" So I bel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieve 76 is not only restricted to non taxable supplies as you mentioned. There might be some other catch which I believe I am missing. Reply By KASTURI SETHI: The Reply: Sh.Punit Agarwal Ji, If you do not agree with me, you should explain what is hidden more therein. Such Section was in Service Tax and Central Excise also. Moreover, I have not 'forced' Sh.G.B.Rao to agree with my views. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Do we both are unable to interpret and analyse Section 76. ? Reply By Ganeshan Kalyani: The Reply: Sri Punit Sir the provision 76(1) states that tax collected by taxpayer should not be retained with him. The tax collected may be actually collectable (on taxable supplies) or not collectable (on exempt supply) , but once collected should not be retained by taxpayer with him. It has to be deposited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Govt. treasury. X X X X Extracts X X X X X X X X Extracts X X X X
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