Interest u/s 234c

Tax queries 1874 views 4 replies

CA Mukesh Goyal

Assistant Manager

143 Points Joined September 2009

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.

Replies (4)

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 Joined September 2009

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 Joined September 2009

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.