Gst section 73

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 July 2018 As per Section 73(5), the person chargeable with tax may, before service of notice under Sub section (1) or, as the case may be..............pay the amount of tax alongwith interest......

As per Section 73(6), the proper officer, on receipt on such information shall not serve any notice under sub section (1) ............

As per Section 73(8) where any person chargeable with tax under sub section (1) pays the said tax alongwith interest payable within 30 days of issue of SCN, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded.
NOW:
As per Section 73(11) "Notwithstanding anything contained in sub section (6) or sub section (8), penalty under sub section (9) shall be payable where any any amount of self assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of tax.

What does this mean. Whether penalty @10% [as per sub section 73(9) ] will be mandatiorily imposed on assessee irrespective of the fact whether he has paid the due tax and interest before issuance of SCN.

Further, if penalty is manditorily imposed then issuance of SCN is a must. PLEASE EXPLAIN

Guest

Guest (Expert)

31 July 2018 No, the penalty will be imposed only when you don't pay the tax on your own before SCN or within 30 days of SCN or when order has been passed.

Querist : Anonymous

Querist : Anonymous (Querist)

01 August 2018 But as per section 73(11) penalty will be payable if tax not paid within a period of 30 days from the due date ofpayment of tax.

Guest

Guest (Expert)

08 August 2018 The subsection 11 is for self assessed tax. Penalty is charged if you don't pay within next 30 days of due date.
IMO, this provision may be due to that if one person calculates tax on basis of self assessment while filing returns, he is liable to deposit that tax amount. But even if he doesn't do that, he is liable for penalty.

SCN case is different, where the tax department calculates his tax liability.