Advance tax

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This query is : Resolved

Dhaval (Querist)

03 October 2012 Suppose for the company advance tax liability for the 1st installment is 20,000.
Company makes full payment of advance tax of 20,000 on 20th June instead of 15th June.
Is there any interest payable on this?

aadish

aadish (Expert)

03 October 2012 When final self assessment shall be done, means last date of filing return for that particular FY, then there is a section which deals with interest on late payment of advance tax sec 234C,
Section 234C gives mode of calculation of interest for deferment of advance tax.

CA. Subhash Dangi

CA. Subhash Dangi (Expert)

03 October 2012 Whatever shortfall in advance tax liability of 15% as on 15th June is liable for Interest U/S 234C.
Ex: As on 15th June= Advance tax liability is Rs.3000/- which is paid on 20th June.
Therefore interest U/s 234C is applicable on Rs. 3000/- (15% on total advance tax liability of Rs.20000)on delay in remittance.

SANJAY TALATI

SANJAY TALATI (Expert)

03 October 2012 Interest under sec. 234 C is attracted on the basis of the tax liability of the company on the Total Taxable income for the year. Hence, if there the advance tax falls short of 12 % 36%, 75% or 100%,
Then the Interest under sec. 234 C is attracted.

CA. R. B. SAH

CA. R. B. SAH (Expert)

03 October 2012 Yes interest has to be paid for delay in payment of advance tax.