Interest u/s 234C

The company paid Advance tax till 15th june on the income received. However, during 2 nd qtr, company opened new unit and the huge income recvd from the second unit is taken care of in 2nd qtr. advance tax is also paid in 2nd qtr. but, at the time of filing of return, 15% of total income tax should be paid in 1st qtr which is not paid actually cause the unit was not opened till then.

Now, the company gets liability of int. u/s 234c  for the same. can co. take any opposition that the unit was not opened till then and therefore, interest is not payable?

Replies (7)

Dear Mukti,

 The company cannot claim that it has opened its unit after the due date, coz under 234C, exemption is given only to Capital gains and Casual incomes(like lottery winning, puzzles etc.) so, it has to pay interest under 234C

AGREED WITH CA G MUGUNTHA.

 

REGARDS,

 

MANOJ

ca g muguntha is right

 

When the unit itself not opened in June, 2010. The question advance tax does not arise for the first instalment. So, you can go for appeal if you want.

Dear Ramanju,

        I do agree that the unit is not existence on the said date. However, in Sec.234C, there is no provision for non-existence of unit. hence, the unit is assessed to be in existence in the relevat A.Y. And interest has to be paid

Originally posted by : CA.G.Muguntha Narayanan

Dear Mukti,

 The company cannot claim that it has opened its unit after the due date, coz under 234C, exemption is given only to Capital gains and Casual incomes(like lottery winning, puzzles etc.) so, it has to pay interest under 234C

i agreed with CA  G Muguntha

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