Go AD-Free with CAclubindia Pro and Daily WhatsApp Updates. Subscribe Now!

DRC 03 for delayed RCM Payment

671 views 3 replies

ash_winb

Student CA Final

60 Points Joined May 2007

Hello Namaskaram

Q. Year 2018-29 and 2019-20

On professional fees and Transport charges RCM not paid

now paid via DRC 03 along with Interest. u/s 73(5) as voluntary payment

Tax component paid using credit ledger Interest paid using Cash ledger

Can department accept this ?

Tax component payment RCM in DRC 03 using credit ledger

If not how to correct alreday adjusted tax amount in DRC 03 Is this possible to get refund of same or is this possible to amend the same or is this possible to reject the same by department proper officer please guide

Replies (3)

Rama chary Rachakonda

Master in Accounts & high court Advocate

9434 Points Joined December 2011

The payment of tax component using credit ledger and interest using cash ledger in DRC-03 is acceptable, as per GST guidelines.

¹ When filing DRC-03, you can utilize the available balance in the Electronic Credit Ledger to pay the tax component.

However, interest and penalties must be paid in cash, using the Electronic Cash Ledger.

In your case, since you've already paid the tax component using the credit ledger and interest using the cash ledger, the department should accept it.

If there's an error or discrepancy in the already adjusted tax amount in DRC-03, you may need to consult with a tax professional or contact the GST department directly to determine the best course of action.

*Possible Outcomes:* - __Refund__: If there's an excess payment, you might be eligible for a refund. - _

_Amendment__: You might be able to amend the DRC-03 form to correct any errors or discrepancies. -

__Rejection__: In some cases, the department might reject the DRC-03 form if there are significant errors or discrepancies.

To ensure the correct outcome, it's recommended that you consult with a tax professional or seek guidance from the GST department.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9434 Points Joined December 2011

The payment of tax component using credit ledger and interest using cash ledger in DRC-03 is acceptable, as per GST guidelines.

¹ When filing DRC-03, you can utilize the available balance in the Electronic Credit Ledger to pay the tax component.

However, interest and penalties must be paid in cash, using the Electronic Cash Ledger.

In your case, since you've already paid the tax component using the credit ledger and interest using the cash ledger, the department should accept it.

If there's an error or discrepancy in the already adjusted tax amount in DRC-03, you may need to consult with a tax professional or contact the GST department directly to determine the best course of action.

*Possible Outcomes:* - __Refund__: If there's an excess payment, you might be eligible for a refund. - _

_Amendment__: You might be able to amend the DRC-03 form to correct any errors or discrepancies. -

__Rejection__: In some cases, the department might reject the DRC-03 form if there are significant errors or discrepancies.

To ensure the correct outcome, it's recommended that you consult with a tax professional or seek guidance from the GST department.

ash_winb

Student CA Final

60 Points Joined May 2007

Okay Thank you sir for reply

Tax component nature is RCM liability. Normal Course it is to be paid only by using Cash ledger. in this case non paid rcm of previous years paid using credit ledger filing DRC 03 Is any possibility that it shouild be paid only by cash ledger while DRC 03 Filing ?

Ex :

Period 2019-20

Tax RCM (Transport Charges,Legal Fees etc)

Payment : Tax compenent by using Credit ledger

Return Filled : DRC 03

Period of payment : 2024-25

For Tax compnent payment of RCM credit ledger use acceptable ?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register

Recent Threads

More recent discussions | Post

Related Threads