Late fee paid for delayed filled return of GST and TDS

15 November 2019
Pl clarify that late fee (not called penalty u/s 37 of I T Act, 1961 ) for GST and TDS retrun filled is a allowable expenditure under I T Act,1961

CA Sumiit B Nagpal (Expert)
16 November 2019
Late fee deposited is in nature of penalty and can’t be claimed as an expense. On the other hand interest paid under GST is allowed. Intt on TDS is generally not allowed as an expenditure however few tribunals have upheld that intt on TDS can also be claimed as an expenditure, however one should add it back in computation to avoid protracted litigation.

CS Abhishek Goyal (Expert)

Click to Talk 16 November 2019
Late fees is not nomenclatures as penalty in gst law. Penalty is something which is a fine for non compliance. Though late fees logically must also fall in the same category since the Govt. itself is not treating as penalty in view of requirement of show cause notice etc. and the system itself demands late fees in gst returns, in my opinion late fees is allowable as an expenditure.

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