Interest under Section 243C & 234B

This query is : Open

MOHIT (Querist)
Follow

24 August 2009 Hi All,

If a Company is a Section 10B Company (STPI Comapny) covered under MAT Section i.e. Sec 115JB, liable to Pay Tax @ 10.30% on it's Profits.
At what Rate should the Calculation of Interest u/s 234 C be done for Qualifying Amount on which Interest is to be Calculated.
For e.g. If Advance Tax Paid on or before June 15 is less Than 12% of (Tax on Total Income Declared in Return of Income Less Tax Deducted At Source)----Amount on which Interest is Payable is = 15%(Tax on Total Income Declared in Return of Income Less TDS Deducted Less Advance Tax Paid till June 15)
Now, for calculation Tax on Total Income Declared in Return Of Income -- Rate should Be Normal 30.90% or MAT Rate 10.30%?

Please advice.

Thanks
Mohit

CA Hiral

CA Hiral (Expert)
Follow

24 August 2009 I think the rate should be 10.3% and not 30.9%.
because assessee is required to pay tax as per MAT then there is no sense of calculating tax for the purpose of 234C at normal rate i.e.30.9%.