In some sections of Cgst act it is written that unpaid TAX and interest can be recoverd by taxpayers.
My question is whether the term 'TAX' includes 'LATE FEE'.
There is no definition of tax given in CGST Act.
In my opinion If section itself states that tax and interest can be recovered then in that case the term TAX is referred exclusively for TAX not for interest as well as for late fee.
Please guide n correct me if I am wrong.
Tax does not include interest or late fees as the nature of these levies are to be understood. Interest and late fees both are in the nature of compensatory to the revenue. interest is compensation for delayed payment of tax while late fees is in the nature of penal provision in case of delayed filing of returns.
even otherwise interest is levied on tax only.
CAclubindia
