Intt on late payment of service tax
This query is : Resolved
20 September 2009
hi
can u please let me know is the interest paid on late deposit of the service tax is an allowable expense under income tax act 1961.
Please reply soon
can u please let me know is the interest paid on late deposit of the service tax is an allowable expense under income tax act 1961.
Please reply soon
CA. B.SRINIVASULU
(Expert)
20 September 2009
No it is not an allowable expenditure.
Shyam Lal Naik
(Expert)
20 September 2009
Sir,
Can you please specify, under which provision of the IT Act, such an amount is disallowed.
This being a normal expenses of a commercial nature, it should be allowed u/s 37.
Can you please specify, under which provision of the IT Act, such an amount is disallowed.
This being a normal expenses of a commercial nature, it should be allowed u/s 37.
CA. abhinav kumar
(Expert)
21 September 2009
As per provision of section 40(a)ii, iia only interest on income tax and wealth tax is disllowed.
as interest on servicetax , sales tax and other interest is normal business expenses hence allowed.
as interest on servicetax , sales tax and other interest is normal business expenses hence allowed.
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