FBT expenses

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nayana

nayana (Querist)
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29 July 2008 int us 234C and us234B is done in FBT for what purpose.and when?

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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30 July 2008 In case of failure to pay the tax
for any quarter, or where the tax
paid is less, then there shall be a
liability to pay interest at the rate
of 1 per cent on the amount of the
short-fall for every month or part
of the month till the short-fall
continues. The liability to pay
interest under the Fringe Benefit
Tax is on monthly basis and shall
continue till the date it is actually
paid. The provision of interest
liability in case of default or
delay in payment of fringe benefit
tax in advance are on the line
of section 234B and 234C of the
act with exception that these two
have been merged by providing
that interest is to be paid from the
date of the default till actual payment.
(There is no breaking of
the period up to 31st March and
the period thereafter). Further, in
case of default in any quarter,
interest is to be computed on
monthly basis.