Interest on tax and late fee

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Querist : Anonymous

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Querist : Anonymous (Querist)
08 February 2018 Dear experts please clarify me that interest on taxes like GST or Income Tax and late fee over filing return late does comes in general expenses of the firm or not? Can we show it as indirect expense in the book as interest incurred on Tax or Late Fee over filing return late or is it of some other nature?

Plz answer
Thanks in advance.

08 February 2018 Interest, penalty and late payment is disallowed under section 37(1) of the income tax act.

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Querist : Anonymous

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Querist : Anonymous (Querist)
08 February 2018 Then Sir where should we show it in the book?
I mean in which group of book it would come?

08 February 2018 Even you show interest or late fee, it should be disallowed and add back income from business while computation of income tax.

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Querist : Anonymous

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Querist : Anonymous (Querist)
08 February 2018 Ok thanks alot sir.
I was confused over it so i asked..thanks again for your reply..


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