Interest on delayed payment
Sudhir Lohar
(Querist) 04 March 2014
This query is : Resolved
WE HAVE PAID DUTY ON 7TH THROUGH E-PAYMENT ALONG WITH THE INTEREST FOR ONE DAY. NOW THE SUPDT IS ASKING US TO PAY THE INTEREST FOR TWO DAYS ie INTEREST TO BE CALCULATED FROM 5TH,AS THERE IS DELAY IN PAYMENT OF DUTY. AND ALSO HAS ASKED US TO PAY INTEREST ON SHORT PAYMENT OF INTEREST ALSO.IS THE SUPDT IS CORRECT IN DEMANDING THE SAME?
R.V.RAO
(Expert) 05 March 2014
the central govt. notification on due dates for central excise is as follows.
Due Date of Payment of Excise Duty Changes Made by notification no. 34/3007 CE (NT)
September 12, 2007
Central Government has issued a notification no. 34/2007 CE (NT) dated 11.09.2007 to amend rule 8 of the Central Excise Rules, 2002.
Now, the due date for deposit of Central Excise duty through electronic mode has been extended by one day.
Therefore due dates for payment of Central Excise Duty as amended shall be as follows:
For SSI Units (i.e. Units availing value based exemption - for more details - refer to chapter no 7, 7A, 7B, 7C and 7D of Central Excise Practice Manual Published on this site)
- 16th day of the following month if paid through electronic mode.
- 15th day of the following month if paid through any other mode.
For all units other than SSI units ( Central Excise Practice Manual )
- 6th day of the following month if paid through electronic mode.
- 5th day of the following month if paid through any other mode.
source: http://www.taxmanagementindia.com/visitor/detail_rss_feed.asp?ID
R.V.RAO
(Expert) 05 March 2014
accordingly interest for delayed payment claimed by suptd. depends on the category of units specifiesd above.pl. apply the due date as per your unit category above ,and you can decide if there is delay and whether int.is payable or not .
Sudhir Lohar
(Querist) 05 March 2014
Dear All,
Thanks for the reply,now as per the above notification our due date is 6th every month.
However as we have delayed the payment by one day the Supdt is considering the due date as 5th.
Is she right?
T. Kalaiselvan, Advocate
(Expert) 05 March 2014
It will be incorrect on the part of the Supdt to calculate the interest before it falls due, you may take up the issue with the higher official to redress your grievance on the subject.
Anirudh
(Expert) 05 March 2014
There seems to be some confusion as to the mode of payment adopted by you.
It should be clearly brought out in writing to the knowledge of the Superintendent that you made the payment through Electronic mode for which the due date was 6th day of the following month. As you made the payment on 7th (instead of 6th) there was only one day delay for which you had already made payment of interest for one day.
If properly explained, I am sure, the Supdt. will understand and you will get the desired relief.
R.V.RAO
(Expert) 06 March 2014
Mr. Sudheer,
as you made online payment of duty on 6 th,you are stating one day delay.
you may accordingly show the above circular to suptd.and explain that the delay is one day.also check if there are intervening holidays,in which case you gain by one more day.since you already included one day int.payment,u r right according to me.
you only need to convince the suptd.
good luck.
Sudhir Lohar
(Querist) 06 March 2014
RESPECTED EXPERTS,
THANKS A LOT FOR ANSWERING MY QUERY.
R.V.RAO
(Expert) 07 March 2014
you are welcome
V R SHROFF
(Expert) 07 March 2014
Sufficiently advised.. no more to add
Guest
(Expert) 07 March 2014
Well advised.
