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waiver of interest u/s. 201

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Querist : Anonymous

Querist : Anonymous (Querist)

25 May 2011 sir,
I would like to ask that whether the assessee can claim the waiver of the interest u/s. 201. What are the conditions to be fulfilled for claimimg such waiver?? The assessee has deposited the TDS after the due date and because of this interest has been imposed. Now as a consultant i need to suggest the assessee to claim waiver of such interest. Please suggest.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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25 May 2011 The interest is mandatory in nature and no waiver is granted.
"The context in which the expression `shall' is used in section 201(1A) makes it unambiguously clear that the levy is mandatory. The purpose of the levy is to claim compensation on the amount which ought to have been deducted and deposited and has not been done. The use of the word `shall' raises a presumption that the particular provision is imperative. But this prima facie inference may be regarded by other considerations such as the object and scope of the enactment and consequences flowing from such construction. Liability to pay interest arises by operation of law, being automatic."

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