Interest on Overpayments and late refunds

Tax200387 sections5 chapters

Chapter IV PROCEDURE AND ADMINISTRATION OF TAX

Statutory text

(1) Where the authority prescribed is required to refund an amount of tax to a VAT dealer as a result of,--
- (a) a decision under section 31 of the Act; or
- (b) a decision of the Appellate Tribunal under section 33 of the Act; or
- (c) a decision of the High Court under section 35 of the Act, such refund shall be made within a period of ninety days from the date of the receipt of the order. Where such refund is not made within the stipulated time, the amount of refund shall carry interest at the rate of one percent per month or part thereof on the amount of the refund for the period of delay.
(2) In other cases where the authority prescribed fails to make a refund within the time specified under sub-section
(1) of section 38 he shall pay simple interest at the rate of one percent per month on the amount of the refund for the period of delay.

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