if DRC 01 issued and Tax Interest Penalty demanded then can I submit the amount by DRC 03 without Penalty or with penalty
then it is mandatory to reply or not
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DRC 01 issued
Replies (3)
Yes, you can pay through DRC-03. Whether penalty applies depends on whether your case is under Sec. 73 (no penalty if paid within 30 days) or Sec. 74 (penalty required, but reduced if paid quickly). And yes—it is mandatory/strongly advisable to reply to DRC-01 through DRC-06 to record compliance.
Dear Azad,
Depending on whether the SCN is issued under Section 73 or Section 74:
-
Section 73(5):
If you pay tax + interest (before issue of SCN), no penalty is payable. -
Section 73(8):
If you pay tax + interest (within 30 days of SCN i.e. DRC-01), no penalty is payable. -
Section 74(5):
If you pay tax + interest + 15% penalty (before SCN), SCN is not issued. -
Section 74(8):
If you pay tax + interest + 25% penalty (within 30 days of SCN), proceedings conclude.
Do you need to reply to DRC-01 ?
-
Rule 142(4) requires the taxpayer to file a reply to DRC-01 (in DRC-06) if you do not accept the liability fully.
-
If you accept the full liability and pay through DRC-03, technically no detailed reply is needed, but best practice is:
-
Submit payment via DRC-03.
-
Upload a short reply in DRC-06 attaching proof of payment, stating that liability is discharged.
-
This prevents unnecessary adjudication orders.
Regards,
S Ram
Dear Azad,
Depending on whether the SCN is issued under Section 73 or Section 74:
-
Section 73(5):
If you pay tax + interest (before issue of SCN), no penalty is payable. -
Section 73(8):
If you pay tax + interest (within 30 days of SCN i.e. DRC-01), no penalty is payable. -
Section 74(5):
If you pay tax + interest + 15% penalty (before SCN), SCN is not issued. -
Section 74(8):
If you pay tax + interest + 25% penalty (within 30 days of SCN), proceedings conclude.
Do you need to reply to DRC-01 ?
-
Rule 142(4) requires the taxpayer to file a reply to DRC-01 (in DRC-06) if you do not accept the liability fully.
-
If you accept the full liability and pay through DRC-03, technically no detailed reply is needed, but best practice is:
-
Submit payment via DRC-03.
-
Upload a short reply in DRC-06 attaching proof of payment, stating that liability is discharged.
-
This prevents unnecessary adjudication orders.
Regards,
S Ram
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