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CA Intermediate · Taxation · Payment of Tax

Ravi & Co, a registered person, has Rs 80,000 in its electronic cash ledger. It claims a refund of the cash ledger balance by filing the relevant refund form. In which circumstances is this refund of the cash ledger balance permitted?

A registered person can claim the balance lying in the electronic cash ledger as a refund, by filing the prescribed return or refund application. It is not forbidden, there is no three-year wait, and the refund goes to the person who deposited the cash.

  1. AA registered person may claim the balance in the electronic cash ledger as refund by filing the prescribed application in the return or refund formCorrect
  2. BThe cash ledger balance can never be refunded and may only be used to pay tax
  3. CRefund of the cash ledger is permitted only after three years
  4. DThe cash ledger balance can be refunded only to the supplier

Explanation

Any balance in the electronic cash ledger can be claimed as refund through the return or the prescribed refund application, subject to the law. It is not locked permanently, and has no three-year waiting rule. Refund goes to the registered person who holds the balance.

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