Interest whether allowed as expenditure

This query is : Resolved

Nikhil Dureja (Querist)
Follow

11 September 2010 interest on late payment of Service Tax wether allowed as deduction or will it be disallowed at the time of computing income.......????

Pls. refer section 40(a),as it was written that interest on "Income Tax" , "Wealth Tax" and "FBT" is not allowed as deduction but interest under any other law is allowed.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
Follow

11 September 2010 Interest on late payment of service is allowed because it is compensatory nature, not penal nature.

Message likes : 4 times

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

11 September 2010 But rule 7C of the Service tax Rules,1994 has used a word penalty ,once in the 3rd proviso thereto ,which may lead to a dispute regarding allowability.

Message likes : 2 times

Nikhil Dureja

Nikhil Dureja (Querist)
Follow

11 September 2010 sir,correct me if i m wrong...

rule 7C of the service tax rules,1994 is all about late filling of "Service tax Return"

and Section 75 of service tax says interest on delayed payment of service tax...

pls,give ur views as it will help me in clearing my concepts...

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

11 September 2010 Yes my observation is wrong. I stand corrected and support the view of Bansal Ji.

Nikhil Dureja

Nikhil Dureja (Querist)
Follow

11 September 2010 great thanxs to

"Mr. Bijendra K. Bansal"

n
"Mr. B. Chackrapani "

but i need more views.......

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

11 September 2010 It is an allowable expenditure. Pl see the link https://www.taxindiaonline.com/RC2/print_story.php?newsid=10324

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

BABUSHANKAR BASAPPA

DURGA TANDEL

R.Prashanth

swaminathan

CA Rahul Patwardhan

Subscribe Now

Interest whether allowed as expenditure

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA