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Interest u/s 234c

CA Mukesh Goyal (Assistant Manager) (143 Points)

10 February 2012

Dear all,

please solve my query

If a company was incorporated on 11 dec. 2008 and received certificated of commencement of business on 05 Jan. 2009. Company filed return for the A/Y 2009-10 before due date declaring income 100000/-. Company has not paid any advance tax.

Whether interest u/s 234C is charged for all the four quarter (company was not in existence in first three quarter) or only 4th quarter.

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4 Replies

(Guest)

In this case company has to pay the tax due on or before 31st March 2009 since the tax paid till last day of previous year will be regarded as advance tax. If company pays tax after 31st March 2009 then interest u/s 234C will be levied.

CA Mukesh Goyal (Assistant Manager) (143 Points)
Replied 13 February 2012

Thanks Ketan,

Whether interest u/s 234C is levied for all the four quarters or only for 4th quarter as company received certificate of commencement of business in 4th quarter.

(Guest)

Interest will be levied for the fourth quarter since the company came into existence in fourth quarter. Also the liability to pay tax became due when incomce is earned so interest cannot be levied for first three quarters.

CA Mukesh Goyal (Assistant Manager) (143 Points)
Replied 14 February 2012

Dear ketan,

Can you provide me the details of section/any case laws in which it is mentioned that interest is charged after obtaining certificate of commencement of business for supporting the above query.

Thanks in advance.