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DIS ALLOWANCE OF INTEREST ON TDS AND INTEREST ON SERVICE TAX (Income Tax)

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This query is : Resolved

Author : Anonymous

( Author )
16 September 2010

PLS EXPLAIN WHETHER INTEREST ON TDS AND INTEREST ON SERVICE TAX, EXCISE DUTY IS ALLOWED AR DISSALLOWED? IF DISSALLOWED THAN UNDER WHICH SECTION?

ALSO TELL ME WHETHER ADDITIONAL DEMANDNOF SALES TAX IS ALLOWED OE\R DISS ALLOWED?

DONATION IS DISSALLOWED UNDER WHICH SECTION?


CA. Praveen Narayan

( Expert )
16 September 2010


An expense incurred not for th purpose of business is disallowed, as ths does nt satisfy conditions given in Sec 37.
Hence donation s disallowed.

any penalty, fine, interest s disallowed if it s due to violation of any Law.
However, if such int, fine etc are compensatory in nature (say delay in remittance of tax), then it s allowable.
Ths principl sapplicable to additional sales tax too..

Hope u r clear..


CA. Praveen Narayan

( Expert )
16 September 2010


An expense incurred not for th purpose of business is disallowed, as ths does nt satisfy conditions given in Sec 37.
Hence donation s disallowed.

any penalty, fine, interest s disallowed if it s due to violation of any Law.
However, if such int, fine etc are compensatory in nature (say delay in remittance of tax), then it s allowable.
Ths principl sapplicable to additional sales tax too..

Hope u r clear..


B.Chackrapani Warrier

( Expert )
16 September 2010

Interest on TDS is levied under section 201(1A) of the Income tax Act,1961. The said expenditure will not be allowed as a business expenditure vide Madras high court decision
in CIT V Chennai Properties & Investments Ltd reported in 239 ITR 435.


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