TMI BlogDemands and RecoveryX X X X Extracts X X X X X X X X Extracts X X X X ..... {sec.73 (6)} Q 3. If show cause notice is issued under Section 73 and thereafter the noticee makes payment along with applicable interest, is there any need to adjudicate the case? Ans. If the person pays the tax along with interest within 30 days of issue of notice, no penalty shall be payable and all proceedings in respect of such notice shall be deemed to be concluded. {sec.73 (8)} Q 4. What is the relevant date for issue of Show Cause Notice? Ans. (i) In case of section 73(cases other than fraud/ suppression of facts/willful misstatement), the relevant date shall be counted from the due date for filing of annual return for the financial year to which demand relates to. The SCN has to be adjudicated w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and along-with interest before issue of notice? Ans. Yes. Person chargeable with tax, shall have an option to pay the amount of tax along with interest and penalty equal to 15% percent of the tax involved, as ascertained either on his own or ascertained by the proper officer, and on such payment, no notice shall be issued with respect to the tax so paid. {sec. 74(6)} Q 7. If notice is issued under Section 74 and thereafter the noticee makes payment, is there any need to adjudicate the case? Ans. Where the person to whom a notice has been issued under sub-section (1) of section 74, pays the tax along with interest with penalty equal to 25% of such tax within 30 days of issue of notice, all proceedings in respect of such n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f issue of such notice. {sec.76 (2 to 6)} Q 12. What is the time limit to issue notice in cases under Section 76 i.e. taxes collected but not paid to Government? Ans. There is no time limit. Notice can be issued on detection of such cases without any time limit. Q 13. What are the modes of recovery of tax available to the proper officer? Ans. The proper officer may recover the dues in following manner: a) Deduction of dues from the amount owned by the tax authorities payable to such person. b) Recovery by way of detaining and selling any goods belonging to such person; c) Recovery from other person, from whom money is due or may become due to such person or who holds or may subsequently hold money ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable on such date shall become payable and recovered without any further notice . {sec.80} Q 15. What is the course of recovery in cases where the tax demand confirmed is enhanced in appeal/ revision proceedings? Ans. The notice of demand is required to be served only in respect of the enhanced dues. In so far as the amount already confirmed prior to disposal of appeal/revision, the recovery proceedings may be continued from the stage at which such proceedings stood immediately before such disposal of appeal/revision. (Sec.84(a )) Q 16. If a taxable person with pending tax dues, transfers his business to another person, what would happen to the tax dues? Ans. The person, to whom the business is transferred, shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest or penalty. Firm/ partner shall intimate the retirement of any partner to the Commissioner by a notice in writing. Liability to pay tax, interest or penalty up to the date of such retirement, whether determined on that date or subsequently, shall be on such partner. If no intimation is given within one month from the date of retirement, the liability of such partner shall continue until the date on which such intimation is received by the Commissioner . {Sec.90} Q 20. What happens to the tax liability of a taxable person, whose business is carried on by any guardian/ trustee or agent of a minor? Ans. Where the business in respect of which any tax is payable is carried on by any guardian / trustee / agent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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