(1) If the amount of tax payable under Section 5 in respect of any periods not paid by the Stockist referred to in Section 7 by the date prescribed under that Section, such stockist shall pay a simple interest at the rate of two perecntum for each English Calendar month of default from the first day of such month next following the date as prescribed to the last day of the month prior to the month in which such tax is fully paid or unto the month prior to the month of assessment under Section 9 in respect of such period, whichever is earlier, often so much of the amount of tax payable by him according to the return, where return is furnished, or according to such assessment where return is not furnished, as remains unpaid at the end of each such month of default.
(2) Where a stockist fails to make payment of any tax payable after assessment made under sub-section (1) of this Section by the date specified in the notice issued under Section 9 for payment thereof, he shall pay a simple interest at the rate of two percentum for each English Calendar month of default from the first day of such month next following the date specified in such notice to the last day of the month prior to the month of full payment of such tax, or up to the month prior to the month of commencement of proceedings under sub-section (10) of Section 9, whichever is earlier, upon so much of the amount of tax due from him according to such notice as remain unpaid at the end of each such month of default.
(3) Where as a result of an order under Section 14, the amount of tax on which interest was payable this Section is modified, the interest shall be payable on the modified amount.
(4) A stockist liable to pay interest under sub-section (1) or sub-section (2) shall pay into a Government Treasury the amount of such interest in such manner and by such date or dates as may be prescribed.
(5) Notwithstanding anything contained in sub-section (1) or sub-section (2), no interest shall be payable in such cases or under such circumstances, and subject to such conditions, if any, as may be prescribed.
(6) The State Government shall in the prescribed manner, pay a simple interest at the rate of two percentum for each English Calendar month of delay in making refund of luxury tax paid in excess which arises out of an order passed under Section 4, from the first day of such manner next following the expiry of three months from the date of passing of such order to the last day of the month prior to the month in which the refund is made upon the amount of tax refundable to him according to such order.
(7) In calculating the interest payable under this Section, the amount of tax in respect of which such interest is to be calculated shall be rounded off to the nearest multiple of one hundred and for this purpose, where such amount contains as part of one hundred rupees. If such part is fifty rupees or more, it shall be increased to one hundred rupees and if such part is less than fifty rupees, it shall be ignored.