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 person; or

(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 calculated accordingly.

(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



Section 41 : Refund of tax for embassies, officials, international and public organizations

Section 42 : Interest

Section 43 : Recovery of tax

Section 44 : Application of the Delhi Land Reforms Act, 1954 for purposes of recovery

Section 45 : Continuation of certain recovery proceedings

Section 46 : Special mode of recovery

Section 46A : Provisional attachment to protect revenue in certain cases

Section 47 : Transfer of assets during pendency of proceedings void

Section 47A : Liability under this Act to be the first charge

Section 48 : Records and accounts

Section 49 : Accounts to be audited in certain cases

Section 50 : Tax invoices



Section 51 : Credit and debit notes

Section 52 : Liability in case of transfer of business

Section 53 : Liability in case of company in liquidation

Section 54 : Liability of partners of firm to pay tax

Section 55 : Liability of guardians, trustees etc



Section 56 : Liability of Court of Wards, etc

Section 57 : Liability in other cases

Section 58 : Audit

Section 58A : Special Audit

Section 59 : Inspection of records

Section 60 : Power to enter premises and seize records and goods

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