Form - 3CD
This query is : Resolved
27 June 2009
Clause 17A has been inserted towards amount inadmisible under section 23 of MSME Development Act, 2006.
opinion is required whether above interest is inadmisible and under which section of income tax act the same is disallowable.
Whether such interest can be treated as compensatory in nature & hence allowable even if it is penalty in nature in MSMED act
opinion is required whether above interest is inadmisible and under which section of income tax act the same is disallowable.
Whether such interest can be treated as compensatory in nature & hence allowable even if it is penalty in nature in MSMED act
Santosh Mishra
(Expert)
28 June 2009
Interest payable to SME'S are in the nature of penalty attracting voilation of MSME Development Act, 2006 and hence disallowable Under Proviso to Section 37
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vinod kumar lalwani
(Expert)
28 June 2009
Dear
Yes the amount is inadmisible under income tax act and it is disallowable on a/c of MSME development act 2006.
it is like a penalty and penalties are specifically disallowable u/s 37.
Yes the amount is inadmisible under income tax act and it is disallowable on a/c of MSME development act 2006.
it is like a penalty and penalties are specifically disallowable u/s 37.
Message likes :
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CA Nitin Wadhwani
(Expert)
28 June 2009
In my opinion, it is disallowable u/s 40.
29 June 2009
Whether the Interest payable to SME'S (which is in the nature of penalty attracting voilation of MSME Development Act, 2006) can be treated as compensatory in nature & hence allowable.
CA Nitin Wadhwani
(Expert)
29 June 2009
No.
It is expressely disallowed u/s 40.
So, it can't be treated as compensatory.
It is expressely disallowed u/s 40.
So, it can't be treated as compensatory.
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