Interest u/s 234 a,b,c

This query is : Resolved

Rishabh Ahuja (Querist)
Follow

21 April 2012 dear experts i have copied this question from the forum and want more opinion
on it

"My Comapny was incorporated under Companies Act, 1956 on 12.07.2007 and entitled to commence business from 31.07.2007.

Entered its first Agreement 01.10.2007.As per Agreement, we raised 1st Invoice on 23.11.2007 towards Advance payment after execution of Contract and before commencement of Work.

we started the work on this project from 24.01.2008 onwards, Income for the AY 2008-09 booked in the 4th Qtr only and paid Advance tax for last Qtr.

Does Sec 234(C) will applicable for other all four qtr or for 4th Qtr only.
"

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

22 April 2012 Since it is the business income all quarter will be applicable this exemption from interest is applicable qtr wise for Capital Gains.

Rishabh Ahuja

Rishabh Ahuja (Querist)
Follow

22 April 2012 sir but the company is getting incorporated in the second quarter .
this is what is confusing me ....

CA Salman Mansoori

CA Salman Mansoori (Expert)
Follow

22 April 2012 "Where in any financial year, - (a) The company which is liable to pay advance tax under section 208 has failed to pay such tax"

or

"The advance tax paid by the company on its current income on or before the 15th day of June is less than fifteen per cent of the tax due on the returned income"

It is very much cleared from the wordings that since the company was not in existence on 15th June, it will not be possible for the company to pay tax till that date. Thus interest calculation will start from 2nd quarter even though income starts later on.

Aijaz Shaikh

Aijaz Shaikh (Expert)
Follow

22 April 2012 1) Since the assessee was not in existence for the first quarter the advance tax liability for the first quarter does not arise.

2) However Interest u/s 234C for the second, third and fourth quarter will be applicable.

3) Take the following example:-

April to Feb : Loss of 1000 crores
March : Profit of Rs. 5000 cores
Total Year : Profit of Rs. 4000 crores

Interest u/s 234C will be payable for all the quarter.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

23 April 2012 The literaligis of 234 C is unambiguous. (It may not be giving considerations for 'in between' born companies) As a consultant / CA, one should have intimated the management in June/ July 2007, to budget the interest u/s 234 C, if company makes a taxable profit.

Rishabh Ahuja

Rishabh Ahuja (Querist)
Follow

23 April 2012 lets see if we can get some more opinion

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

01 August 2024 https://docs.google.com/document/d/1qtih7QU8GPy0eZo2p_DizQLntS6UF-OenZ68ujlc5yI/edit?usp=sharing

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

tpksathyan narayanan

S D Kannan

ASIM ATREY AND ASSOCIATES

Tanishka Khandelwal

Vimlesh kumar

Subscribe Now

Interest u/s 234 a,b,c

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA