Interest on reversal of itc

This query is : Resolved

Neha JAIN (Querist)
Follow

19 January 2019 ONE OF OUR CLIENT HAS CLAIMED EXCESS CREDIT FOR THE MONTH OF APRIL AMOUNT RS.120000/- DUE TO CLERICAL MISTAKE NOW IT CAME TO OUR NOTICE SO I HAVE FOLLOWING QUESTION:
1) WHAT IS RATE OF INTEREST FOR REVERSAL?
2) WE HAVE CREDIT MORE THAN RS. 120000 THROUGH OUT APRIL TO DECEMBER DO WE NEED TO PAY INTEREST ?
3) WHAT IF WE HAD CREDIT RS 120000 TILL OCTOBER THAN WE UTILIZED SUCH AMOUNT AND PAID TAX LIABILITY USING SUCH AMOUNT.?
PLEASE PROVIDE RELEVANT SECTION.

CA Anita Bhadra

CA Anita Bhadra (Expert)
Follow

20 January 2019 In my view
Rate of interest is 18% .

Your client need to reversed credit and also pay interest from @ 18% from Oct to the date of reversal of credit.
Relevant provisions are :-
Interest related provisions – Section 50 of the Act read with notification 13/2017 CGST dated 28.06.2017.
• In terms of section 50(1) of the Act, where a person is liable to pay tax fails to pay the tax or any part within the period prescribed, interest payable at the rate of 18%.
•
• When recipient has made an excess or undue claim of ITC as per section 42(10) of the Act, rate of interest applicable will be 24%.

The higher rate of interest is applicable only in case of contravention of a certain provision of section 42 & 43 of the Act. Your client’s case does not falls under sec 42(10)
.

Message likes : 1 times

Neha JAIN

Neha JAIN (Querist)
Follow

20 January 2019 Thank you for reply
I just want to re confirm that

I have claimed 100 rs wrong credit
And i have credit ledger 2000 rs other than above than dont require to pay interest on reversal of such credit?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

THUSHAR MURALI KRISHNA

ACCFIN SOLUTIONS

N.Chandrasekaran

Yash

RAHUL SURANA

Subscribe Now

Interest on reversal of itc

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA