capitalisation of Interest on short payment of custom duty
This query is : Resolved
YOGESH GUPTA
(Querist)
03 October 2008
sir
Please suggeset whether we should capitalise the interest on short payment of custom duty on import of machine.
Regards
Yogesh gupta
Please suggeset whether we should capitalise the interest on short payment of custom duty on import of machine.
Regards
Yogesh gupta
CA V. Mohanakrishnan
(Expert)
03 October 2008
the same needs to be capitalised since the same is directly linked to the machine
YOGESH GUPTA
(Querist)
04 October 2008
Sir
I think it would be teated as penal interest and whether any penal interest could be capitalised. If penal interest is not a deductable expenditure so how the same can be capitalised.
I think it would be teated as penal interest and whether any penal interest could be capitalised. If penal interest is not a deductable expenditure so how the same can be capitalised.
S.Srinivasaraghavan
(Expert)
04 October 2008
The disallowave of penal interest is asper IT Act. This has nothing to do with treatment as per accounting principle. These two are different aspects.
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