Disallowance
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 September 2011
I wanted to know whether interest on service tax and Interest on VAT will be dissallowed by the I.Tax act?
15 September 2011
Interest on service tax and VAT is an allowable expenditure.
Interest on sales tax is an allowable expenditure. Lachmandas Mathuradas Vs.CIT (2002) 254 ITR 799(SC).Same analogy can be applied to VAT also.
Interest on sales tax is an allowable expenditure. Lachmandas Mathuradas Vs.CIT (2002) 254 ITR 799(SC).Same analogy can be applied to VAT also.
Praveen Sharma
(Expert)
15 September 2011
Allowable Expenditure. Payment of interest is not violation of any law. It is compliance of law.
15 September 2011
I agree with the experts
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