11D. [ Payment of interest. [Inserted by Punjab Act 26 of 1978 w.e.f. 20.7.1978.]
(1)If any dealer fails to pay the amount of tax due from him as required by sub-section (4) of section 10, he shall, in addition to the amount of tax, be liable to pay simple interest on the amount of tax due from him at the rate of one per centum per month from the date immediately following the last date for the submission of the return under sub-section (3) of that section, for a period of one month and thereafter at the rate of [two per centum] per month till the default continues.(2)If the amount of tax or penalty due from a dealer is not paid by him within the period specified in the notice of demand or if no period is specified, within thirty days from the service of such notice, the dealer shall in addition to the amount of tax or penalty, be liable to pay simple interest on such amount at the rate of one per centum per month from the date immediately following the date on which the period specified in the notice or the period of thirty days, as the case may be, expires, for a period of one month and thereafter at the rate of one and half per centum per month till the default continues :Provided that where the recovery of any tax or penalty is stayed by an order of any court, the amount of tax or penalty shall, after the order of stay is vacated, be recoverable alongwith interest at the aforesaid rate on the amount ultimately found to be due and such interest shall be payable from the date the tax or penalty first became due.(3)The amount of interest under this section shall -(i)be calculated by considering part of month as one month [-] ['Words and any amount less than one hundered rupees as one hundred rupees' omitted by Punjab Act 22 of 1994 w.e.f. 27.9.1994.](ii)for the purposes of collection and recovery, be deemed to be tax under this Act;(iii)be in addition to the penalty, if any, imposed under this Act.Explanation. - If payment of the amount of tax is made by the any dealer through cheque and the same is dishonoured by the bank concerned, it will amount to failure on the part of the dealer to pay the amount of tax.]
