Clarification
This query is : Resolved
CA Nitin Wadhwani
(Querist)
09 September 2008
author : Gautam J Patel
Posted On : 9/9/2008 7:57:19 PM
whether interest on TDS ,service tax & wealth tax is allowed as a business expense under the Income Tax Act?If yes please give me the relevant section
Expert : CA Praveen Chopra
Posted On : 9/9/2008 7:59:46 PM
Interest on income tax and wealth tax is not allowable but interest on service tax is allowable.Interest on income tax and wealth tax takes the character of income tax as well as wealth tax respectively as judicially held in many decisions whereas interest on service tax is genuine business expenditure allowable u/s 37.
Interest On Income Tax Is Certainly Allowed Because Ineterest Received On Income Tax Refund Is Chargeable To Tax.
Posted On : 9/9/2008 7:57:19 PM
whether interest on TDS ,service tax & wealth tax is allowed as a business expense under the Income Tax Act?If yes please give me the relevant section
Expert : CA Praveen Chopra
Posted On : 9/9/2008 7:59:46 PM
Interest on income tax and wealth tax is not allowable but interest on service tax is allowable.Interest on income tax and wealth tax takes the character of income tax as well as wealth tax respectively as judicially held in many decisions whereas interest on service tax is genuine business expenditure allowable u/s 37.
Interest On Income Tax Is Certainly Allowed Because Ineterest Received On Income Tax Refund Is Chargeable To Tax.
09 September 2008
the answer was coorectly posted by ca praveen chopra sir because intt of penal nature in any other law is not allowable but otherwise it is allowable.
CA Nitin Wadhwani
(Querist)
09 September 2008
Yes.
It is Allowable.
It is Allowable.
Dhirajlal Rambhia
(Expert)
21 June 2023
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