Section 42 of Delhi Value Added Tax Act 2004 - Interest
How to calculate Interest? Section 42 of DVAT Act 2004
Section 42 : Interest - Delhi Value Added Tax Act 2004
Rule 36 (3 to 5) Form 24
(1) A person entitled to a refund under this Act, shall be
entitled to receive, in addition to the refund, simple interest
at the annual rate notified by the Government from time to time,
computed on a daily basis from the later of ?
(a) the date that the refund was due to be paid to the
(b) the date that the overpaid amount was paid by the person,
until the date on which the refund is given.
PROVIDED that the interest shall be calculated on the amount
of refund due after deducting therefrom any tax, interest,
penalty or any other dues under this Act, or under the Central
Sales Tax Act, 1956 (74 of 1956):
PROVIDED FURTHER that if the amount of such refund is
enhanced or reduced, as the case may be, such interest shall be
enhanced or reduced accordingly.
Explanation.- If the delay in granting the refund is
attributable to the said
person, whether wholly or in part, the period of the delay
attributable to him shall be excluded from the period for which
the interest is payable.
(2) When a person is in default in making the payment of any
tax, penalty or other amount due under this Act, he shall, in
addition to the amount assessed, be liable to pay simple
interest on such amount at the annual rate notified by the
Government from time to time, computed on a daily basis, from
the date of such default for so long as he continues to make
default in the payment of the said amount.
(3) Where the amount of tax including any penalty due is
wholly reduced, the amount of interest, if any, paid shall be
refunded, or if such amount is varied, the interest due shall be
(4) Where the collection of any amount is stayed
by the order of the Appellate Tribunal or any court
or any other authority and the order is subsequently
vacated, interest shall be payable for any period
during which such order remained in operation.
(5) The interest payable by a person under this Act may be
collected as tax due under this Act and shall be due and payable
once the obligation to pay interest has arisen