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.
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