Skip to content

CA Final · Indirect Tax Laws · Demands and Recovery

Ravi Traders received an order under section 73(9) for the period 2018-19. It then filed no appeal and has no writ petition pending. A notification fixed a date for the section 128A waiver scheme. Ravi wants to benefit from it. Which statement is correct?

Ravi must pay the full tax per the order by the notified date. Then no section 50 interest or penalty is payable and the proceedings are deemed concluded. The period 2018-19 falls within the scheme, and any interest or penalty already paid is not refunded.

  1. ARavi must pay the full tax per the order by the notified date; interest under section 50 and penalty are then not payable and proceedings are deemed concludedCorrect
  2. BRavi must pay tax, interest and half of the penalty by the notified date
  3. CRavi cannot claim the waiver, since the scheme covers only periods after 31 March 2020
  4. DRavi gets the waiver only if the tax is paid, and any interest already paid will be refunded

Explanation

Section 128A covers periods from 1 July 2017 to 31 March 2020 and orders under section 73(9) where no appellate order under section 107(11) or section 108(1) has been passed. On payment of the full tax by the notified date, no interest under section 50 or penalty is payable and proceedings are deemed concluded. No half-penalty condition exists, and the third proviso bars refund of interest or penalty already paid.

Did you get it right without looking?

One question tells you little. A timed set on Demands and Recovery shows your real accuracy, how long you take and where you lose marks.

Practise Demands and RecoveryFree diagnostic mock

More Demands and Recovery questions