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. "
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.
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.
CAclubindia
