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Interest under s.115-p

Mihir Manohar (CA Final - Article Assistant) (474 Points)

23 August 2013

Domestic company declared Dividend on 3rd april. The last date for payment of DDT turns out to be 17th April(3+14=17).

But the company pays the DDT on 6th Sep. What is the the total amount of interest leviable under S.115-P?

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1 Replies

ASWINI (ARTICLE ASSISTANT) (44 Points)
Replied 23 August 2013

Where the principal officer of domestic company and the company fail to pay the whole or any part of tax on distributed profits within the time i.e. 14 days, he or it shall be liable to pay simple interest @ 1% for every month or part thereof on amount of such tax for the period beginning on the date immediately after the last date on which such tax was payable and ending with the date on which the tax is actually paid.