Is custom duty, social welfare surcharge, stamp duty paid at custom clearance allow as deduction

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This discussion clarifies whether customs duty, social welfare surcharge, and stamp duty paid during goods clearance can be deducted for income tax purposes. Experts confirm that these costs are generally allowable as business expenses on the debit side of the Profit & Loss Account, provided they are incurred exclusively for business operations and are not capital in nature.

Nikhil Sharma

Nikhil Sharma (Querist)
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12 September 2025 Dear Experts,
Custom duty, social welfare surcharge, and stamp duty, paid at custom clearance of goods for furtherance supply.... be allowed as deduction in income tax.... can we book all three heads in debit side of profit & loss Account.

Pls suggest.....

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 September 2025 Yes, custom duty, social welfare surcharge, and stamp duty paid at customs clearance for the furtherance of supply can generally be booked as expenses on the debit side of the Profit & Loss Account, and these are normally deductible while computing business income under the Income Tax Act, provided they are incurred wholly and exclusively for the purpose of business.
Deductions are available provided the expenses are not capital in nature and are incurred wholly and exclusively for business purposes.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 September 2025 Good Luck...

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