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TMI BlogInterest on delayed payment of tax [Section 50]X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 [ (w.e.f. 01.11.2024 vide N.No. 17/2024 dated 27.09.2024) inserted vide Finance (No. 2) Act, 2024 ] in respect of the said period. Time period for calculation of interest [ Section 50(2) ] * The intere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... culating 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 w.e.f. 01.11.2024 vide N.No. 20/2024-CT dated 08.10.2024] in respect of the said period, * Amount on which interest is payable to be computed * the interest on tax payable in respect of such supplies shall be calculated on the portion of tax which is paid by debiting the electronic cash ledger, * Period for which interest is pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 utilisation of such wrongly availed input tax credit till the date of reversal of such credit or payment of tax in respect of such amount, at such rate as may be notified under section 50(3). [ Rule 88B(3) ] * Explanation -For the purposes of rule 88B(3), - * (1) input tax credit wrongly availed shall be construed to have been utilised, when the balance in the electronic credit ledger falls below the amount of input tax credit wrongly availed, and the extent of such utilisation of input tax credit shall be the amount by which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provides that where a person has been served with show cause notice but has made the payment of tax and penal interest under Section 50 within thirty days of issue of notice, no penalty is payable and all proceedings in respect of that tax amount are deemed to be concluded. * On a conjoint reading of Sections 50(1), 73(5), 6) and (8) of the Act, it is evident that where a person makes a voluntary payment of interest along with belated payment of tax whether admitted on his own or within thirty days from the date of issue of show cause notice, then the proceedings are deemed to be concluded and no penalty is leviable. * Other Important Points to Note * The term 'tax' here means the tax payable under the Act or Rules made thereunder. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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