CA lakshmikanth (Chartered Accountant) (238 Points)
03 June 2011Hi friends
My small doubht is interest on delayed payment of service tax is allowable expenditure under income tax act or not
and the interest amount is debited to other rates and taxes is it correct or not?
Arvind Sharma
(ACA)
(1432 Points)
Replied 03 June 2011
Ya... Int on delayed payment of Service Tax allowable exp u/s 37(1)........
and the same shoud be booked as Interest Charges instead of Rate & Taxes....
I think, there is a case law for the same... I will try to provide the same.....
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 03 June 2011
yes interest on delayed payment is allowed
M K Goel
(Service)
(21 Points)
Replied 03 September 2011
have any case laws pls email on goel.mukesh @ gmail.com
CAclubindia
