Interest on delayed refund
No interest is payable on the refund due to you as per returns filed
by you. However, if granting of refund is delayed beyond the above
mentioned periods, you are eligible for interest for delayed
payment. Simple interest at the rate of 6% per year would be
payable for the period from the due date to the date of refund.
Some tips for getting timely refund
Your refund claim would be processed faster if –
• You have filed the return with the Returns branch as per the
prescribed time schedule.
• The return filed by you is correct, complete and self-consistent.
• You have claimed refund as per the appropriate periodicity.
• The amount of refund due to you has been computed correctly.
• Refund application in Form 501 is filed with the Refunds
branch in time.
• You have promptly furnished Bank Guarantee and other
details when called for.
• You have kept ready all the documents and records for audit.
• You have filed the return for a period for which you are
required to file a return. Thus, if you are required to file a
quarterly return, but you file a monthly return, then the refund
would not be granted for the monthly return. In order to be
eligible for refund, you would have to file a quarterly return.
Points to note
• Calculate your sales and purchase turnover correctly
• Calculate the set-off admissible correctly
• Ensure that proper tax invoices are available to support the
set-off claimed
• Calculate your tax liability correctly
• File the return in the Returns branch in time
• File form 501 expeditiously for claiming refund
• Consult the local sales tax office if in doubt.
Written by admin on September 11th, 2011 with comments disabled.
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