In a situation where provisions of Section 206C are complied but in a delayed fashion the assessee becomes liable to interest on such delayed payments. Provisions of the Act state that in case an assessee does not collect the tax or after collecting the tax fails to pay it as required under this section, he shall be liable to pay Simple Interest at the rate of 1% per month or part thereof on:

Further where such interest shall be paid before furnishing the Quarterly statement for each quarter in accordance with the provisions Section 206C where the tax has not been paid as aforesaid, after it is collected, the amount of the Tax together with the amount of Simple interest thereon be a Charge upon all the assets of the person responsible for collecting tax.