how to judge u/s 37 (urgent)
This query is : Resolved
10 December 2009
A pharma co. has made payment to GOVT. with interest since co. was selling medcines above GOVT. specified M.R.P.
please tell me that whether payment is penal OR compensatory in nature u/s 37(prohibited by any law).
If possible tell me basis of answer Or any case law since I have to prove the point before the co. & CA firm .
please tell me that whether payment is penal OR compensatory in nature u/s 37(prohibited by any law).
If possible tell me basis of answer Or any case law since I have to prove the point before the co. & CA firm .
10 December 2009
your query is not very much clear give more facts to discuss
10 December 2009
my question is w.r.t sec. 37 of income tax which disallows certain payment which are offences Or prohibited by any law.
A payment will be disallowed if penal in nature. whether payment is penal OR compensatory in nature is MAIN THING TO DECIDE. SITUATION:
GOVT. HAS PRESCRIBED M.R.P FOR CERTAIN MEDICINES . A pharma. co. has violated this notified M.R.P & hence made payment with interest consequent to order of GOVT. DEPTT.
Please decide the situation with discussing the reasons for answer If possible. PLEASE REPLY!!!!!
rahul14121985@rediffmail.com IF POSSIBLE PLEASE REPLY AT FOLLOWING ADDREESS.
A payment will be disallowed if penal in nature. whether payment is penal OR compensatory in nature is MAIN THING TO DECIDE. SITUATION:
GOVT. HAS PRESCRIBED M.R.P FOR CERTAIN MEDICINES . A pharma. co. has violated this notified M.R.P & hence made payment with interest consequent to order of GOVT. DEPTT.
Please decide the situation with discussing the reasons for answer If possible. PLEASE REPLY!!!!!
rahul14121985@rediffmail.com IF POSSIBLE PLEASE REPLY AT FOLLOWING ADDREESS.
10 December 2009
THANKS MR. BAJPAI FOR REPLYING BUT I AM NOT ABLE TO SEE YOUR ANSWER . I CAN SEE ONLY 2 QUESTION AND YOUR FIRST REPLY ONLY . KINDLY REPLY ME AT MY E-MAIL ADDRESS.
THIS IS URGENT.
THIS IS URGENT.
11 December 2009
The Govt. Deptt. has charged interest goes to show that they first must have calculated amount over-charged by you over the total quantity supplied by you during the period under review. From this it seems the amount over-charged by you and recovered by Govt. Deptt. is compensatory in nature and interest paid is penal in nature.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
