CA PUNIT KUMAR (Accounts Officer) (47 Points)
02 March 2017I am working in a service industry. Our company received a notice of tax demand of Rs 71400 u/s 154 for AY 2013-14. We paid it with in 30 days of Communication of notice. After payment of demand with in 2 weeks we received an another notice u/s 220(2) for interest of Rs 1428. As we paid our demand within 30 days, so there should not be any interest demand form deptt side. Please advise the action for the same.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160721 Points)
Replied 02 March 2017
Yes, such interest is detected by department only after payment of original demand. It may the interest calcuation for the period from the date of demand raised and notice issued.
CA PUNIT KUMAR
(Accounts Officer)
(47 Points)
Replied 03 March 2017
Sir actually we received notice of demand of Rs 71400 on 10.02.2017 ( date of communication of notice) and paid it on 18.02.2017 i.e with in 30 days. After this we received demand notice of interest under section 220(2) of Rs 1428. My doubt is only this, why interest demand raised on us as we paid our demand in 30 days. Please suggest.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(160721 Points)
Replied 03 March 2017
Actually, you are not at fault, but department sends notice for basic outstanding amount and interest liability over it separately. This interest is from the date of order to notice issued.
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