Section 234C - An Interesting One.

[sathyanarayanan kasinathan]

A company has paid the first installment(full 15%) by June 17th, instead of the stipulated June 15th. I'd like to know whether the Interest payable u/s 234C should be calculated using '3' months or only '1'month, since the delay is only 3 days.

[CAGOPALJI AGRAWAL]

The interest would be chargeable only for period of default not for 3 months. You may refer Panther investrade Limited Vs. CIT 

AI Summary

Interest under Section 234C: compute liability for the actual period of default, not the entire instalment period. Under Section 234C, interest on delayed advance tax instalments is chargeable for the actual period of default rather than for the entire instalment period; a short delay beyond the due date requires computation of interest only for the days of delay, not the full subsequent instalment window, as supported by cited precedent.