i have taken ED credit of a bill, twice in the month of Oct. and made entry reverse (Debit)in Dec. is there any penalty or interest payable to department. if it is payable, under which head i have to pay and what will be the interest rate.
21 March 2012
From ED I understand it is excise duty, No interest is required to be paid if you although had taken credit but not utilized it and reversed it. Before it was required to pay interest even on unutilized amount in view of various circulars and judicial decision.
But as per Recent Budget 2012 the language of provision has been changed to the effect that if Credit has been taken wrongly but remiaining unutilized and then reversed later on, then no interest is required to be paid..
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