20% OF DEMAND PAYMENT IN APPEAL

This query is : Resolved

Suresh S. Tejwani (Querist)
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12 November 2024 IF WE FILE AN APPEAL AGAINST ORDER ISSUED UNDER SECTION 154, FOR PARTIAL ALLOW OF TDS AND LIABILITY TO PAY DEMAND IS MORE THAN 1,50,000 THEN IT IS MANDATORY TO PAY 20% OF DEMAND ISSUED UNDER SUCH RECTIFICATION ORDER?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 November 2024 Yes, Instruction No. 1914 dated 21.3.1996 revised on 31.07.2017; contains guidelines issued by the Board regarding procedure to be followed for recovery of outstanding demand, including procedure for grant of stay of demand; it has been decided that the standard rate prescribed in O.M. dated 29.2.2016 be revised to 20% of the disputed demand, where the demand is contested before CIT(A).
But, 20% of pre-deposit requirement is not thumb rule. Guidelines are generally meant to normalize the process however flexibility are allowed based on merits of case to case.