I have wrongly availed excess ITC amounting Rs 5000 in 2018-19. and deposit the same in December 2023 in response of notice u/s 61.
Now Assessing authority demanding interest on it @ 24% , which comes more than availed excess ITC.
My question is what should be the rate of interest and can it be more than availed ITC i.e. 5000.
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Interest on wrongly availed excess ITC
Replies (1)
Interest is applicable only if you have availed and utilised the ITC. The date of calculation of interest will be from the date of utilisation. The interest rate applicable is 18% and not 24%.
As far as the question goes that whether interest can be more than tax? so yes it can get more than tax itself.
As far as the question goes that whether interest can be more than tax? so yes it can get more than tax itself.
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