LIVE GST Certification Course by CA Arun Chhajer begins 21st April. Register Now!!

Important

09 January 2012

there is a capital gain of Rs. 38 lacs in january 2010. there was a huge brought forward loss so mat was applicable accordingly we paid tax on MAT @ 15% Nd we had deposit advance tax on march as per the amount calculated @ 15%.

now the dept levied interest u/s 234C.

so kindly tell me whether in case of mat (15%, 45%, 75%, 100%) will apply or normally as per income tax we are correct in depositing advance tax in the qtr in which such income arises.

please reply ASAP.

Reply
Follow
Share

3 Replies

C.A / C.S. DHARMESH SOJITRA (C.A/C.S - PRACTICE ) (149 Points)
Replied 09 January 2012

Yes Advance Tax provision levy to all co. Whose Tax Liability Exceeds Rs.10000 p.a . so, there is no question regarding MAT credit, MAT is applicable at last, after compliton of financial Year. so, as per Your Case, Interest Levy by Dept. is valid.

Amrita Agarwala (CA, CS) (66 Points)
Replied 09 January 2012

m asking we have deposited the tax in the quarter in which the capital gain arises then why we interest will be levied on us????

CA Neil Ganatra (Partner - Gautam Joshi & Co.) (871 Points)
Replied 09 January 2012

Dear Amrita,

If you have shown the consideration as capital gain in the return filed and have paid advance tax @ 15% accordingly then interest under section 234C can not be levied as per section 234C(1). Sec 234C will be applicable in case of MAT also however as per section 234C(1) if the shortfall is due to capital gain and assessee has paid the tax on gain in the immediate advance tax installment in the quarter in which gain arises then 234C interest can not be charged.

I hope it is clear to you.