Section 42 in Daman and Diu Value Added Tax Regulation, 2005
42. Interest.
(1)(a)A person entitled to a refund under this Regulation, shall be entitled to receive, in addition to the refund, simple interest at such rate, as may be notified by the Government from time to time.(b)The simple interest at the rate specified under sub-section (1) shall be calculated from -(i)the date from which the refund was due to be paid to the person; or(ii)the date on which the person paid the excess amount,whichever is later, and such interest shall be calculated upto the date on which the refund is given.(c)The interest shall be calculated on the amount of refund due after deducting therefrom any tax, interest, penalty or any other dues under this Regulation, or under the Central Sales Tax Act, 1956 (74 of 1956), if such dues relate to the sale of goods from Daman and Diu.(d)If the amount of such refund is enhanced or reduced, as the case may be, such interest shall be enhanced or reduced accordingly.(e)If the delay in granting the refund is attributable to the said person, whether wholly or in part, the period of the delay attributable to him shall be excluded from the period for which the interest is payable.(2)When a person is in default in making the payment of any tax, penalty or other amount due under this Regulation, he shall, in addition to the amount assessed, be liable to pay simple interest on such amount at such rate, as may be notified by the Government from time to time from the date of such default until he makes such payment of tax, penalty or other amount.(3)Where the amount of tax (including any penalty due) is wholly reduced, the amount of interest, if any, paid shall be refunded, or if such amount is varied, the interest due shall be calculated accordingly.(4)Where the collection of any amount is stayed by the order of the Appellate Tribunal or any court or any other authority and the order is subsequently vacated, interest shall be payable for any period during which such order remained in operation.(5)The interest payable by a person under this Regulation may be collected as tax due under this Regulation and shall be due and payable on and from the date on which the obligation to pay the interest has arisen.
