Debit interest

Debit interest arises under the Quarterly Instalment Payment (QIP) provisions. It can only arise on a Quarterly Instalment payer. It can run at any time during the instalment period which is from the due date for the first quarterly instalment payment to the normal due date. It runs for every day during the instalment period on which the amount of tax paid by the company is less than the amount it was required to pay under the QIP rules.