TMI BlogInterest in DRC 07X X X X Extracts X X X X X X X X Extracts X X X X ..... Sir, If in DRC 01 tax is mentioned and interest as per applicable rate u/s 50 then can department demand interest in DRC-07 Order or they had to quantify interest amount in SCN DRC 01 - Reply By KASTURI SETHI - The Reply = Interest cannot be quantified either in SCN or Order-in-Original inasmuch as interest is to be computed up to the date of payment of tax which was not paid withi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n due time. So the quantification cannot be done in advance. If done, that will not be complete and correct. So the exact amount of interest to be paid can be calculated/ascertained only on the date of payment of tax. - Reply By Amit Agrawal - The Reply = Section 75(7) reads as follows: The amount of tax, interest and penalty demanded in the order shall not be in excess of the amount sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice. Section 75(9) reads as follows: The interest on the tax short paid or not paid shall be payable whether or not specified in the order determining the tax liability. - Reply By Padmanathan Kollengode - The Reply = Learned friend Amit JI, Soliciting your views on the fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowing for the benefit of querist and readers: Section 75(9) is restricted to tax short paid or not paid. Thus, Section 75(9) does not cover cases of ITC wrongly utilized (as wrongly availed is now dealt by Rule 88B ) and tax erroneous refunded. Therefore, due to specific absence of these cases in section 75(9) , the quantification of interest in DRC-07 is mandatory for ITC wrongly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utilized and tax erroneous refunded? ( Also another issue is section 50 does not cover tax erroneous refunded. So the levy of interest itself is in question.) With respect to the query here, section 75(9) does not mandate quantification of interest in Notice, though section 75(7) requires so. And will it be covered by Section 160(1) , if a view is taken that it is mandatory to quantify ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest in SCN? - Reply By Amit Agrawal - The Reply = @ Shri Padmanathan Ji, W.r.t. your last post, my views are as under: A. In subject query, there was demand raised for interest u/s 50 in the SCN, though same is not quantified. B. I think that same is sufficient compliance of Section 75(7) read with Section 160(1) . B1. This is more so, if subject issue under dispute (tax s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hort paid / tax not paid / ITC wrongly availed utilised, as the case may be) is not paid by the tax-payer before SCN. P.S. W.r.t. larger issues raised by you specially with regard to Section 75(9) , lets deal with them as and when proper query gets presented itself on this TMI forum. These are ex facie views of mine and the same should not be construed as professional advice / suggestion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . - Interest in DRC 07 - Query Started By: - SANTOSH PATIL Dated:- 23-11-2023 Last Replied Date:- 26-11-2023 Goods and Services Tax - GST - Got 4 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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